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Management Control System and Organisational Effectiveness of Deposit Money Banks in Nigeria

Author

Listed:
  • Yemisi Oluwafunmilayo AYORINDE

    (Ecobank Nigeria Plc.)

  • Ayoola Abayomi AREMO

    (Department of Banking and Finance, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria)

Abstract

Financial crisis and incessant fraud in the Nigerian banking system with their implication on banking sector performance has led to research on the effectiveness of management control system of deposit money banks in Nigeria. This study thus was conducted to examine the effect of management control system on organisational effectiveness of deposit money banks in Nigerian. 200 respondents which are employees of deposit money banks were sampled in this study based on convenient random sampling technique and data were collected using questionnaire. Data were analysed with descriptive and regression techniques. It was found from the study that management control system enhance the utilisation of resources while weak internal control system impede the reduction of fraud in the banking sector. The study also discovered that challenges of management control system weakens the ability of banks to detect and reduce fraud in the banking sector. It was suggested that banks should dedicate efforts in overhauling their weak and outdated management control mechanism. In addition, computerisation of all banking activities and control mechanism was suggested in this study.

Suggested Citation

  • Yemisi Oluwafunmilayo AYORINDE & Ayoola Abayomi AREMO, 2022. "Management Control System and Organisational Effectiveness of Deposit Money Banks in Nigeria," Noble International Journal of Business and Management Research, Noble Academic Publsiher, vol. 6(3), pages 34-39, September.
    • Handle: RePEc:nap:nijbmr:2022:p:34-39
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    References listed on IDEAS

    as
    1. Frank Kabuye & Joachim Kato & Irene Akugizibwe & Nicholas Bugambiro, 2019. "Internal control systems, working capital management and financial performance of supermarkets," Cogent Business & Management, Taylor & Francis Journals, vol. 6(1), pages 1573524-157, January.
    2. Sahabi Ibrahim & Gordon Diibuzie & Mohammed Abubakari, 2017. "The Impact of Internal Control Systems on Financial Performance: The Case of Health Institutions in Upper West Region of Ghana," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(4), pages 684-696, April.
    3. Gideon Tayo Akinleye & Adebola Daniel Kolawole, 2020. "Internal Controls and Performance of Selected Tertiary Institutions in Ekiti State: A Committee of Sponsoring Organisations (COSO) Framework Approach," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 405-416, January.
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