Incorporation of Controlling into the Organizational Structures of Industrial Enterprises

Natalia Vranakova (), Zdenka Gyurak Babelova and Eva Santava
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Natalia Vranakova: Institute of Industrial Engineering and Management, Faculty of Materials Science and Technology in Trnava, Slovak University of Technology in Bratislava, 917 24 Trnava, Slovakia
Zdenka Gyurak Babelova: Institute of Industrial Engineering and Management, Faculty of Materials Science and Technology in Trnava, Slovak University of Technology in Bratislava, 917 24 Trnava, Slovakia
Eva Santava: Institute of Industrial Engineering and Management, Faculty of Materials Science and Technology in Trnava, Slovak University of Technology in Bratislava, 917 24 Trnava, Slovakia

Administrative Sciences, 2024, vol. 14, issue 12, 1-20

Abstract: Enterprises, especially those operating in a dynamic environment of industrial production, need a management concept capable of responding to changes. For prompt and accurate reactions, it is crucial for managers to have a feedback system that allows monitoring the achievement of defined goals, the utilization of the enterprise’s potential, and the identification of its weaknesses. Controlling is an effective tool that enables monitoring and reporting the necessary areas, ensuring the efficient functioning of business processes through the early identification of deviations. It provides the enterprise’s management with vital information about goal achievement, the enterprise’s real potential, warnings about shortcomings, and a relevant feedback system. This research is aimed at examination of the role of controlling within the organizational structures of industrial enterprises in Slovakia and evaluation of the degree to which the current integration of controlling requires adjustments in companies’ organizational structures. For the research purpose, a questionnaire survey was conducted, including 61 respondents, all specialists from financial or controlling departments. The most significant findings include the organizational integration of the controlling department within the surveyed enterprises and the necessity to reconsider how the controlling department is incorporated into the company’s organizational structure. The findings suggest that companies with a functional organizational structure may need changes to enhance decision-making authority within the controlling department, while those with a line organizational structure already grant sufficient decision-making power to controllers.

Keywords: controlling; industrial enterprises; management; organizational structure; performance (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2024
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