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The essence and barriers to the use of controlling in the practice of manufacturing enterprises

Author

Listed:
  • Marek Potkany

    (Technical University in Zvolen)

  • Hussam Musa

    (Technical University in Zvolen)

  • Jarmila Schmidtova

    (Technical University in Zvolen)

  • Pavol Gejdos

    (Technical University in Zvolen)

  • Janka Grofcikova

    (Matej Bel University in Banska Bystrica)

Abstract

The theory and examples from practice confirm that theuse of controlling in economic practice differs significantly in the context of understanding its essence. The ambiguity of the definition of controlling, two different thought concepts, the diversity of tools and approaches, but also other barriers prevent its use to a greater extent than this managerial approach would deserve. The current research is based on the understanding of the essence of controlling in German-speaking countries and is oriented towards a coordinated predictive management approach based on precise cost reports. The research question was aimed at identifying current use and barriers of controlling in manufacturing enterprises in relation to the understanding of its essence and impact of performance through a questionnaire survey and structured interviews with managers from 2021 to 2022. A population of 2,504 enterprises was addressed by means of stratified sampling. The chi-square goodness-of-fit test was used to test how well the characteristics of the research sample fit the final population. A total of 352 manufacturing enterprises formed the resulting sample representative – enterprise size and type of industry designated according to the European standard industry classification system. Methods of contingency analysis and interval estimates of the population proportion were used to test the stated hypotheses. The testing confirmed a dependence between the practical use of a broader scale of controlling tools and the performance of enterprises measured by the return on sales (ROS) indicator, as well as the difference in the perception of barriers to the implementation of controlling depending on the size of enterprises. Controlling with the assistance of software support of the management information system, with a detailed implementation process and precisely defined competencies of employees and controllable KPI, creates the potential to increase the complexity of management and performance of enterprises as well as the elimination of potential risks.

Suggested Citation

  • Marek Potkany & Hussam Musa & Jarmila Schmidtova & Pavol Gejdos & Janka Grofcikova, 2024. "The essence and barriers to the use of controlling in the practice of manufacturing enterprises," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 27(3), pages 172-182, September.
    • Handle: RePEc:bbl:journl:v:27:y:2024:i:3:p:172-182
    DOI: 10.15240/tul/001/2024-5-009
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    More about this item

    Keywords

    Controlling; barriers; performance; return on sales;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • P41 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Planning, Coordination, and Reform

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