Volume 6, Issue 4

How to Control University Subsidiaries – the Management Approach of Graz University of Technology (pp. 143-151)

Ulrich Bauer, Heimo Theuretzbacher-Fritz
Universities are forced to exploit their research results and Intellectual Property Rights (IPRs). This means, that universities have to participate in spin-offs and research enterprises and also to manage them professionally. This leads to the question, how specific management tools can help to make university spin-offs and research subsidiaries successful and sustainable. This article introduces a theoretical framework which is adopted to universities spin-offs and competence centres and shows exemplary the implementation and management approach of Graz University of Technology.

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The Challenge of Controlling (pp. 153-163)

Nidžara Osmanagić Bedenik
Recent years in business have been characterized by a high level of dynamics and complexity. Today’s business problems cannot be solved with traditional methods and approaches from the past. It is clear that a new management architecture, new approaches and new methods are required. Controlling is one of the new approaches which helps management to adapt better to new circumstances, to build vital and vivid organisations, capable of facing new challenges. Controlling with controllers as experts provides proactive and neutral management support in their decision and management process. Not only do more and more theoretical papers and books bring evidence of the rise of controlling, empirical research studies also reflect its broad implementation in practise. Controlling is a success factor, no doubt. In companies in Croatia controlling is a relatively young function with increasing importance, still more intra- than extra-oriented, focused on operative business more than its strategic and normative aspects. Different perspectives in controlling development, e.g. controlling in SME’s, crisis controlling, project controlling, controlling in HR, finance, production as well as controlling in non-profit organisations and sustainability or ‘green’ controlling are some of its future directions.

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Controlling: Between Theory and Practice (pp. 165-170)

Veselin Perović, Milisav Vujičić
Even though controlling as a term dates from the Middle Age, it was accepted by Americans in the 18th century, when a clerk who was responsible for keeping the balance of government budget appears with an official title called comptroller. In the 1970s in Europe, German speaking countries accepted controlling as a more serious topic of conversation. Controlling can be described as a navigation process towards set goals of an enterprise or as an economic consciousness of an enterprise. In German speaking countries, the academic public became interested in controlling right after it was proven to be an effective tool practically. Corporate practice led to the emergence of Controlling in the academic field. In 1960s, positions of controllers started to appear in companies. Around the end of 1960s, the term Controlling was introduced by dr Albrecht Deyhle, who was the most influential person for introducing Controlling to German speaking countries. Because of this of dr Deyhle’s influence, faculties started to research the new phenomenon. The developtment of Controlling as a an academic discipline was driven by a large degree by its positive recognition in business practice. Controling has become a recognized discipline not only in practice, but also in research. An increasing demand for controllers in the business world paved the road for the developtment of Controlling chairs in Germany. In the beginning of 1970s, universities started to offer Controlling courses as a part of business administration degrees. In 1973 the first Controlling chair was established at the Technical University of Darmstadt. In 1974 the second Controlling chair was established at the University of Duisburg. By 1988 there were 14 and by 2004 were 72 chairs for Controlling. Starting in 2005, the course Controlling has been offered to students of specialistic studies at the Faculty of Technical Sciences, University of Novi Sad.

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Controlling Between Autonomy and Heteronomy (pp. 171-177)

Aleksandra Todorović – Dudić
The strategic playing field of controllers from the perspective of the services to be delivered and the relationships to internal customer, were frequent references to how controllers should adapt their abilities to such challenges. Controllers should therefore under no circumstances take comfort in their very strong internal competitive position, but have to work actively on its ongoing strategic development. If controllers focus consistently on identifying new services for managers, if they keep their managers' satisfaction in mind, if they measure their tasks in the same way that they plan and monitor business development, then there are strong arguments why they should be able to maintain their „market dominance“ in the area of management support.

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A Correlation Between the Function of Controlling and the Process of Risk Management in the Company (pp. 179-189)

Emil Živkov, Branislav Nerandžić, Bogdan Kuzmanović
It is highly important to identify the right place for implementing the key role of coordinating the overall process of risk management in an organization. In addition to the right place it is important to determine the right time for it. The entire course of risk management activities must be integrated with the process of management of goals of the organization. If we take into account that for the synchronization of the management organization of company goals, the most responsible factor, somehow, is the controlling function due to its very nature of activity, then a logical conclusion is being imposed that this function is also the most suitable one for identifying the place of coordination of the risk management process. And not only as an organizational unit and according to the nature of its tasks, but also of the time synchronization through activities of planning and reporting, in view of the impact analysis, estimated and actual, transferred and avoided business risks.

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Implementation of the Balanced Scorecard as an Instrument of Strategic Contolling in the Brewing Industry (pp. 191-198)

Dalibor Jeličić, Ranko Bojanić
Companies, nowadays, face numerous obstacles when it comes to developing a success-measuring system, which would actually monitor the right things and balance the financial figures with the drivers of future performance, simultaneously directing energy of intangible assets and helping organizations implement strategies. Balanced Scorecard is a tool that meets the set requirements, because in its basis it combines a communication tool, a measuring system and a strategic management system. This is a carefully selected set of measures obtained from an organization’s strategy which can be quantified. The selected measures may be used in order to present results and performance drivers to employees and external stakeholders. Using these, organizations can achieve their mission and strategic objectives.

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Comparison to Kralicek DF Indicators and Altman Z-Score Model for Serbian Metal Industry (pp. 199-204)

Svjetlana Lončarević
This study compares the results of two instruments of strategic controlling. The research was based on a sample of several companies in the metal-industry sector of the Serbian economy. Using a software tool "Scorex.biz Analayzer" and publicly available data of annual financial statements, interdependence and similarity of the results obtained from Kralicek DF indicators and Altman Z-Score model will be shown. Controlling is one of the functions of management, which increases its efficiency, effectiveness and ability to adapt to changes. It is tool used to support management of each company, made of system methods and tools aimed to show business efficiency. Specifically, controlling includes the planning, coordination and control activities, and it was developed due to the increasing volume of business information. As a result, controlling is expected to provide expert and substantiated opinions, recommendations and conclusions for management so it can be familiar with the issues of running the business, as well as possible future risks and effects of potential business decisions. Because it covers the entire range of related activities and requires knowledge from different functional areas (finance, accounting, information technology, organizations etc.) controlling is important business supporting processes within the company, primarily focused to company internal managing stuff.

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Controlling as a Asupporttool for Generating Savings in Procurement (pp. 205-208)

Željko Dudić
Procurement controlling process increases efficiency and reduces costs associated with improperly submitted orders. Most large organizations already appreciate the advantage to be advised by effectively controlling purchasing activities. Procurement controlling and procurement performance management are two synonyms for the same functional area. Through procurement controlling purchases received information that is relevant for their purchasing decision. Improving supplier performance is a challenge faced by many organizations, accordingly this, procurement controlling offers the right tools such as developing balanced scorecard. By developing a set of a leading performance measures, managers have the information necessary to identify opportunities for performance improvement.

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SUPERVISORY INSTRUMENTS OF CORPORATE GOVERNANCE (pp. 209-219)

Branislav Nerandžić, Emil Živkov
A separation between capital ownership and management and control of the managers’ work represents a portion of corporate governance that is visible. Fundamental aspects of corporate governance are, by origin, linked to the accounting and auditing, more precisely to the controlling and internal audit. The task of the corporate governance is to ensure better functioning of the company and to protect the interests of owners through efficient internal controls, reliable and timely reporting, planning, systems of financial and non-financial evaluations, the system of providing mutual feedback and via reliable information system. If corporate governance is understood as a set of processes, customs, policies, laws, decisions, institutions and supervisory mechanisms that affect the governance and control of the company, it is crucially important to establish inter-relations among organization supervisory instruments, and to determine the true measure of their impact. The research of the application of corporate governance in our business environment is now primarily of an explorative character, it is based on secondary sources and investigates past experiences. The aim of this paper is also of exploratory nature, i.e. it is an attempt to diagnose the situation in order to understand the nature of the problem of application of corporate governance. The research is primarily focused on the observation and definition of synergy of external and internal control mechanisms. Internal instruments mentioned in this paper are the system of financial management and control, integrated management systems (IMS), the assessment of business risks, internal control system, accounting system, modern information system (ERP), and thus supported fast close of the accounting period (FAST CLOSE), internal audit and controlling. External instruments presented in this paper are government measures, legislation and external audit of financial statements. Refraction of supervisory impact, by using these instruments, must be observed through the activities of the executive management, the Supervisory Board and its committee - the Audit Committee.

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