Functions and features of controlling in multinational corporations

Abstract

Era of Multinational Corporations (MNCs) started in early 2000’s and immediately the role of controlling within corporations became topic of scientific discussions. During financial crisis of 2007-2009 companies have focused main attention on their survival. Economical stabilization and renewal drew attention to effective management of subsidiaries again. “The German model of controlling” which is under consideration in this article, as namely “management of management of the company” was currently described in scientific literature in comparison to human immune system. This point of view was significantly reduced scope of controlling concept. The approach largely narrows down understanding focusing only on risks missing out opportunities.

Methods of analysis and synthesis have been applied, within the Grounded Theory and The Evolutionary Theory of the Multinational Corporation. The aim is to extend scope of controlling concept via analogy of human nervous system. This will help to extend approach with additional functions and features, such as reverse knowledge transfer as well as define metrics to measure controlling effectiveness. Based on theoretical studies the hypothesis of new scope of well performed controlling and additional indirect parameters for its effectiveness measurement was presented.

As main novelty a highlighting of controlling concept incompletion need to be mentioned, and presentation of an approach which will be able to cover this gap which provides a possibility for future development of controlling concepts in management science.