BACKGROUND AND PROBLEM
The most of the companies in Sweden are small, this group include companies with less
than 49 employees and over 99 percent of the companies in Sweden belongs to this group.
The fact result in that the most of the companies differ from the large enterprise often
described in accessible literature for students within the economic control area. This
depends on that large-scale enterprises are overrepresented in student literature, which
is the first problem that the study covers. Many researchers also consider that there is a
gap between the theory in student literature and practice, which is seen as the second
problem that’s the study covers.
The focus of this study is to examine how small staffing agencies in the region
Östergötland, which include the cities Linköping and Norrköping, are using formal
instruments as a part of their economic control. The question is which formal instruments
are used and why, as well as what role filling the formal instrument?
The purpose with the study is to become absorbed in how small enterprises applying
economic control in their organization, what type of formal instruments they use and why.
The study only covers formal instruments that are used by small enterprises active in the
business of staffing agencies within Sweden. The collection of empirical data is limited by
one sample, the method of selection is described in the methodology section.
The data collection was conducted using interviews with four companies. The selection
process was carried out using the selection criteria and a business directory, resulting in
a population of eight companies in the staffing industry with 4-49 employees represented
in Linköping. From these eight companies, four were selected to be included in the sample
of the study.
The study results show that all companies use budgets and estimates, some companies
use forecasts and also of non-financial indicators. One company uses a balanced
scorecard. The result also shows how companies choose which economic instruments
should be included in the company's economic control, key aspects here are needs,
circumstances, knowledge and beliefs, as well as individual preferences. The result also
describes what type of role the formal instrument should fill in the organization, which
the results shows differs between different economic instruments and depending on
which organization the instrument is used.