Controlling

• 26 hrs lectures
• 13 hrs exercises

Knowledge: The student can explain the role of controlling and the controller in the organisation. They know how to explain complicated procedures of cost allocation and assess their advantages and disadvantages. They know the basics of drafting corporate statements or presentations on management. They can use tipping point analyses and solve problems with the provided rebate. They can analyse deviations from established plans.
Skills: The student can handle multi-step calculations of contributions to cover fixed costs and create profit. They can use tipping point analyses and solve problems with the provision of discounts. They can analyse deviations from established plans. From the results of their analyses the student can produce a report on the economic performance of a specific department in the enterprise.
Abilities: The student is able to orient themselves in financial statements and calculations, can make oral presentations on their work and carry responsibility for the correctness of their results.

The main objectives of the course are to introduce controlling as a subsystem of enterprise management, economic management activities in the enterprise focussed on achieving the business plan, the functions of controlling and its basic areas, the fundamentals of operational controlling and strategic controlling, the fundamentals of financial controlling and controlling research and development.

An ability to solve equations and calculate minimum and maximum values of functions, working out function graphs in various rasters, knowing the relationship between graphs and numerical formulation, knowledge of structure and creation of the corporate annual plan including relations among its parts, knowledge of account sheets, product cost calculations, corporate information systems and managerial functions.

• MERCHANT, Kenneth A a Wim A VAN DER STEDE. 2012. Management control systems: performance measurement, evaluation and incentives. 3rd ed. New York: Financial Times/Prentice Hall, 815 p. ISBN 02-737-3761-9.

The basic topics of the lectures are as follows:
1. The essence and tasks of controlling. Materials for controlling. Controlling as a subsystem of enterprise management. Controlling functions. The controller in the enterprise – updating the position in the company.
2. Operational controlling: management accounting and enterprise planning, system of budgeting, annual planning (including writing the annual plan, rabat). Updating the definition of requirements for the controlling system.
3. Operational controlling: single-step and multi-step calculations of contributions to cover fixed costs and create profit.
4. Operational controlling: information security of managers, flexible plan of costs, deviation analysis, control.
5. Operational controlling: modern system of budgeting - Activity Based Budgeting, Advanced Budgeting: Better and Beyond.
6. Operational controlling: Managing corrective actions to fulfil planned objectives, including value analysis.
7. Strategic controlling: multi-year planning (the connection between strategic, multi-year and annual plans). The development and realisation of strategy.
8. Selected instruments for strategic controlling.
9. Strategic controlling: information security of managers, analysis and control. Permanent management of potential. Managing corrective actions to fulfil objectives.
10. Strategic controlling: Recommended approaches to introducing controlling, incorporating controlling in the enterprise’s hierarchy, the process of controlling, examples from practice.
11. Controlling risks: definition of basic terms, general approach to risk management, risk management with the aid of the RIPRAN method.
12. Controlling research and development: definition of innovation, the innovation process, the effects of innovation, the project approach, financial vs. non-financial indicators, systems of indicators.
13. Integrating the Balanced Scorecard into the controlling system: key problems, integration of the BSC into strategic and operational planning, reporting, interconnection of methods of controlling with the Balanced Scorecard.

The content of the seminars covers the topics from the lectures and work on the assigned tasks.
1. Tipping point analysis calculations in planning.
2. Multi-step calculations of contributions to cover fixed costs and create profit.
3. Test 1.
4. Zero-base budgeting. The flexible plan of costs of cost centres and its fulfilment.
5. Analysis of deviations.
6. Test 2. Awarding of credit.

Requirements for gaining the credit:
a) Active participation in seminars, individual assessment by the teacher (max. 10 points) – calculation of examples (set in e-learning), presentation of approaches and results.
b) 2 credit tests at previously set dates. Each test will include 2 examples, the maximum score from each test is 10 points. To pass the test a score of at least 60%, i.e. 6 points, is needed. Each test can only be resat once.
c) A students will gain a credit if they have at least 60% of the total possible number of points from the seminars (max. 30 points) and at the same time gets at least 60% in each of the tests, i.e. 2 x 6 points. The assessment from the seminars is entered into the overall assessment of the course with a weighting of 30%.

Examination requirements:
Knowledge is verified by a written examination. Only students who have applied in IS and have the credit entered will be allowed to sit the examination. The examination is made up of 1 theoretical question and 1 case study, or 2 theoretical questions. The examination lasts 45 minutes. The maximum score for the examination is 70 points. The resulting assessment of the course is the sum of the points scored from the seminars and the examination. The examination is classified according to the ECTS scale. Incorrect or illegible answers are assessed as unsatisfactory.

The course is made up of lectures that explain the basic principles, problems and methodology of the discipline. The lectures combines theory with illustrative solutions of examples.

Attendance at lectures and seminars, including credit tests, is mandatory. Attendance is checked by tests and an attendance sheet.