A few years ago public companies tried to introduce an output-oriented controlling as well as switching from cameralism to double-entry accounting known from the private sector through innovative management tools. Additionally, private companies tried to establish the cost accounting in the public sector. Through the implementation of these innovative controlling tools public companies expected efficiency enhancement, strong customer focus as well as cost- and timesaving.
The main reason for it was the public finance deficit and the rapid-changing environment as well as the related customer-focused operations and strategies. Especially in cities and municipalities big budget deficits have been observed. Through the changing of social values the individualization of customer needs towards public companies increased. All these changings and deficits couldn’t be solved by a public company without additional external resources. Public companies slowly started to contracting services out and saving on public sector wages. In the same time many public sectors transferred into private ownership of private companies.
A precondition for a successful performance of all these goals is the implementation of a controlling system that defines and measures success factors for companies. This implementation in German public companies still exists only in rudimentary form. Responsible for it is the dislike of control of German politics and public companies.
Table of Contents
1 Introduction
1.1 Research Question
1.2 Research Method
2 Controlling
2.1 Historical Background & Origin
2.2 Two Types of Controlling
2.3 Instruments
2.4 Targets
3 Public Companies in Present
3.1 Public Companies
3.2 New Public Management
3.3 Private Public Partnership
4 Controlling Implementation in Public Companies
4.1 Process of Implementation
4.2 Targets of Controlling in Public Management
4.3 Instruments
5 Conclusion
Objectives & Core Themes
This assignment aims to examine the challenges and necessity of implementing effective controlling systems within public companies. It focuses on the transition from traditional administrative structures to modern, output-oriented management and explores how controlling instruments, originally derived from the private sector, can be adapted to public sector requirements to enhance efficiency and customer focus.
- The evolution and definition of controlling in public organizations
- Distinction between operational and strategic controlling functions
- Impact of New Public Management and privatization trends on public entities
- Implementation challenges of performance measurement in the public sector
- The role of outsourcing controlling as a potential solution for public sector constraints
Excerpt from the Book
1.1 RESEARCH QUESTION
A few years ago public companies tried to introduce through innovative management tools an output-oriented controlling as well as switching from cameralism to double-entry accounting known from the private sector. Additionally private companies tried to establish the cost accounting in the public sector. Through the implementation of these innovative controlling tools public companies expected efficiency enhancement, strong customer focus as well as cost- and timesaving.
The main reason for it was the public finance deficit and the rapid-changing environment as well as the related customer-focused operations and strategies. Especially in cities and municipalities big budget deficits have been observed. Through the changing of social values the individualization of customer needs towards public companies increased. All these changings and deficits couldn’t be solved by a public company without additional external resources. Public companies slowly started to contracting services out and saving on public sector wages. In the same time many public sectors transferred into private ownership of private companies.
A precondition for a successful performance of all these goals is the implementation of a controlling system that defines and measures success factors for companies. This implementation in German public companies still exists only in rudimentary form. Responsible for it is the dislike of control of German politics and public companies.
Summary of Chapters
1 Introduction: This chapter outlines the motivation for the study, identifying public budget deficits and the need for efficiency as drivers for new controlling methods, while defining the research scope.
2 Controlling: This section traces the historical development of the controller role and distinguishes between operational and strategic controlling functions and instruments.
3 Public Companies in Present: This chapter analyzes the current state of public companies, examining the influence of New Public Management and the role of Private Public Partnerships as privatization strategies.
4 Controlling Implementation in Public Companies: The chapter explores the practical steps for implementing controlling in public administrations, focusing on specific effectiveness and efficiency targets.
5 Conclusion: The final chapter evaluates the advantages and disadvantages of outsourcing controlling, concluding that while it offers benefits for stakeholders, it can challenge the decision-making power of political entities.
Keywords
Controlling, Public Companies, New Public Management, Privatization, Cost Accounting, Efficiency, Effectiveness, Performance Measurement, Strategic Management, Budgetary Deficit, Outsourcing, KPIs, Public Administration, Stakeholder Value, Organizational Change
Frequently Asked Questions
What is the core focus of this assignment?
The work focuses on the implementation and adaptation of controlling systems within public sector companies to address budget deficits and improve operational efficiency.
What are the primary themes discussed?
The main themes include the evolution of the controller's role, the transition to New Public Management, the use of private sector controlling instruments in public entities, and the debate surrounding the privatization of public services.
What is the primary research goal?
The research goal is to understand how public companies can utilize controlling tools to define and measure success factors despite the inherent challenges of measuring intangible public sector outputs.
Which scientific method is applied?
The assignment is a literature-based analysis that provides a structured overview of controlling terminology, evaluates current privatization trends, and analyzes the implementation steps of controlling systems.
What is covered in the main section?
The main section covers the conceptual framework of controlling, the definition of public companies and NPM, the practical implementation of effectiveness and efficiency targets, and the comparison of cost accounting statements.
Which keywords best characterize this work?
Key terms include Controlling, Public Companies, New Public Management, Privatization, and Efficiency.
How does the author define the difference between effectiveness and efficiency targets?
Effectiveness targets focus on uncovering deviations between original goals and actual task fulfillment to improve service quality, whereas efficiency targets relate to accounting systems, budgetary discharges, and staff motivation.
Why is the implementation of controlling considered "rudimentary" in German public companies?
The author suggests this is primarily due to a historical "dislike of control" within German politics and the difficulty of applying standard private sector controlling models to social institutions.
- Quote paper
- Irina Düsseldorf (Author), 2016, Implementation of Controlling in Public Companies, Munich, GRIN Verlag, https://www.grin.com/document/350010
