Controlling Effectiveness Model — empirical research results regarding the influence of controlling on organisational performance

Abstract

The article aims to explain how controlling influences an organisation as a whole, considering the job performance of employees and managers. It describes the development and verification of the Controlling Effectiveness Model, which characterises the impact, the place of each variable and the direction of each relationship in the effort to shape organisational performance. The hypothesis was verified with the help of empirical research, which was conducted with 264 organisations operating in Poland. The survey took place in October 2019. The authors of the article used the CAWI method. Efforts had been made to ensure a diversified research sample encompassing various organisational characteristics. The exploratory and confirmatory factor analysis and the sequentially mediated regression model were used to verify the hypothesis. The empirical research allowed confirming a statistically significant indirect impact of the quality of controlling on organisational performance. This relationship depends on the job performance of managers and employees. The analysis of the impact made by controlling on the job performance of employees and managers as we as the organisational performance resulted in a mediation model (the Controlling Effectiveness Model) and confirmed the effect of controlling on organisational performance through the impact on job performance of managers and employees. The article has practical implications. The organisations that decide to implement controlling should focus on the quality of this management support method. It is not enough to simply implement controlling as organisations need to ensure the correct implementation. In this context, it is also relevant to properly shape functional, organisational and instrumental controlling solutions (tailored to the characteristics of the organisation as a whole, as well as to the environmental conditions, under which the organisation operates), which determine the quality of controlling.

The Moderating Role of IT in Process of Shaping Organizational Performance by Dynamic Capabilities of Controlling

“…It will allow to verify and more comprehensively explain the mechanism of controlling dynamic capabilities influence on organizational performance. It seems that controllers, using their controlling solutions and providing managers with high-quality products (services), affect the job performance of employees and managers [45], which ultimately and indirectly affects organizational performance [45]. Therefore, in the light of the above, the main hypothesis should be formulated: Hypothesis 4 (H4).…”

Perception of Essence of Controlling and Its Use in Manufacturing Enterprises in Time of Crisis: Does Controlling Fulfill Its Essence?

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Intangible assets and the efficiency of manufacturing firms in the age of digitalisation: the Russian case

“…Here, only some general vision is developed. Such an approach enables better planning and assessment of technological development in organisations (Bieńkowska, 2020;Nazarko et al, 2020). Next…”