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Vuko, Tina; Ojvan, Ivica (2013)
Publisher: Croatian Operational Research Society
Journal: Croatian Operational Research Review
Languages: English
Types: Article
Subjects: Applied mathematics. Quantitative methods, Management, T57-57.97, Business performance, Dynamic environment, Dynamic environment; Management; Controlling; Business performance, Controlling
Managing business successfully in dynamic environment requires effective controlling system. Controlling is the process of defining objectives, planning and management control so that every decision maker can act in accordance with agreed objectives. Controlling function as a separate department contributes business efficiency trough ensuring transparency of business result and business processes. Controlling takes place when manager and controller cooperate. The aim of this paper is to investigate the effectiveness of controlling function (i.e. controlling department) in Croatian companies and to address the specific features of the function that contribute significantly to overall business performance. The research is conducted on the sample of companies listed on the Regulated market of the Zagreb Stock Exchange. Survey is used as a method to collect the data regarding the controlling function, while financial data necessary for the research are extracted from the published financial statements. Results of the research indicate that controlling department has positive effects on the business performance.
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