Management Control D1

This course creates a basic understanding of management accounting and control and tasks of controllers within the ranges information supply, planning and control. The students learn what management control is and what controllers do. On this basis, important management accounting and control instruments, like performance indicators, transfer pricing, budgeting, and frameworks of strategic planning will be introduced. Furthermore, the students should learn to understand the uses and limitations of these instruments.

Chapter 1: Principles of Management Control

• Control problems in business organizations
• Management control devices, practices, and systems
• Interaction of human behavior and management control
• Conceptualization of management control as assurance of rationality

Chapters 2 and 3: Performance Measurement

• Opportunities and pitfalls regarding management using financial performance indicators
• Opportunities and pitfalls regarding management using non-financial performance indicators (including ESG-related KPIs)

Chapter 4: Operational Planning

• Perspectives on planning as a key concept of management control
• “Traditional” budgeting: Concept, benefits, and challenges
• Forecasting and alternative approaches to budgeting
• Transfer pricing: Concept, benefits, and challenges

Chapter 5: Strategic Planning

• The gap between the strategic vision and its implementation
• Management devices to bridge the gap: Balanced Scorecards (BSC) and Objectives & Key Results (OKR)

Chapter 6: Controllers in Organizations

• Limits to rational decision-making revisited
• Roles and tasks of controllers in their interplay with managers: Opportunities and challenges
• Empirical insights into controllership

The lecture series will include two guest talks by top controllers from DAX companies on current topics in ESG controlling and corporate planning.