THE IMPACT OF MANAGEMENT
CONTROL SYSTEM ON CORPORATE PERFORMANCE
(A CASE STUDY OF
UBA PLC)
BY
YOUR NAME
MATRIC NO:
BEING RESEARCH
PROJECT SUBMITTED TO THE FACULTY OF MANAGEMENT SCIENCE, BUSINESS ADMINISTRATION
DEPARTMENT,
--------
UNIVERSITY
IN PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE AWARDS OF BSC (BUSINESS ADMINISTRATION),
LAGOS STATE UNIVERISTY
DATE.....
ABSTRACT
This study focused on the Impact of Management Control on
Corporate Performance – A Case study of UBA PLC. The study was concerned with
the determination of how Management Control System can improve corporate
performance. The study examined the objectives of Management Control System,
the problems facing organizations in implementing and installing effective
management control system, the various management control techniques that being
used by Nigerian Managers This study used Descriptive Research Design,
Stratified and Case Study Sampling Method. Questionnaire was the major research
instrument. The researcher made use of both open end and close ended questions
in questionnaire construction. Some of
the findings of this study are as follows:
It was found in this study that there
is relationship between management control system and corporate performance. It
was also found that management control system enhances corporate profitability.
It was also found that effective management control system reduces
organizational cost. Furthermore, it was also found that management control
system reduces fraudulent activities among employees
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
Management control systems are woven
into day-to-day operational responsibilities of managers. Management controls
are organization policies and procedures, processes for planning, organizing, directing
and controlling the operational activities of an organization. They are tools
to help managers achieve results and safeguard the integrity of their
activities and also to achieve the goal of the organization.
Management control benefit rather than
encumber management and must make sense within each organizations unique
operating structure and environment.
Management controls can be said to be
the organization policies and procedures to provide reasonable assurance that:
Ø Programs and functions achieve their
intended goals.
Ø Resources are used in consultant with
the organization’s mission
Ø Programs and functions resources are
protected from waste, fraud and mismanagement.
Ø Laws and regulations are complied
with
Ø Reliable and timely information is
obtained.
Management structures and controls
should be result-oriented and managers should determine the appropriate balance
of controls.
The
European court of Auditors (1998) defines management control as all the
policies and procedures conceived and put in place by an entity’s management to
ensure the economical, efficient achievement of the entity’s objective, the
safeguarding of the organization asset and information, as well as the
prevention and detection of fraud and errors.
1.2 STATEMENT OF THE PROBLEM
The various problems examined in the
course of this project include the following:
Ø The problem of installing effective
and efficient management control system in the organization.
Ø The problem of non-challant and
uncooperative behavior of some managers and employees who frustrate successful
operation of the management control system.
Ø How to obtain the support of all the
organizational members to make the control system effective.
Ø The problem of the building
automotive system in the corporate/management control system.
Ø The problem of integrating all the
daily routine operations of the organization into the management control
system.
1.3 OBJECTIVE OF THE STUDY
The objectives of carrying out this
study include the following:
a. To design the most effective and
efficient management control system that can be used in UBA Plc or in any other
organization.
b. To highlight some problems that managers
can face in designing and implementing effective management control system and
offer solutions to such problems.
c. To identify the objectives of management
control.
d. To identify the impact of management
control system on the performance of an organization.
e. To
contribute to knowledge or what we know about management control system.
1.4 SIGNIFICANCE
OF THE STUDY
The impact of management control
system on organization profitability and performance is unquestionable. The
significance study can be seen from the contributions that management control
system makes to corporate performance and profitability. The importance of
management control system to organizations includes the following:
i. It enables
employees at their different function achieve their intended results.
ii. It allows
resources to be used consistently with the corporate mission.
iii. It makes
possible for laws and regulations to be complied with.
iv. It makes
possible for reliable and timely information to be obtained.
v. Management
control system enables programs and functions resources to be protected from
waste, fraud and mismanagement.
1.5 RESEARCH QUESTIONS
The following research questions were
asked in the course of this study:
a. What is the relationship between
management control system and corporate performance?
b. What are the objectives of management
control systems?
c. What are the effects of the use of
management control system on profitability of an organization?
d. The use of management control system does
not allow employee to use their initiative? (Yes/No)
e. Does effective monitoring through
management control system prevents wastages or production of defective
products?
1.6 RESEARCH HYPOTHESIS
First Hypothesis
H0: There is no relationship between management
control system and corporate performance.
H1 There is relationship between
management control system and corporate performance.
Second Hypotheses
H0: Effective control system does not reduce
organizational cost.
H1 Effective Control system does reduce organizational
cost.
Third Hypotheses
H0: Effective management control system does not
enhance corporate profitability.
H1 Effective management control system does enhance
corporate profitability.
Fourth Hypotheses
H0: Management control system does not reduce fraudulent activities
among employees.
H1: Management control system does reduce fraudulent activities
among employees.
1.7 DEFINITION OF TERMS
For the purpose of the study, the
following definition shall be examined:
i.
Control: This means exercising authoritative
or dominating influence over people’s behavior, the power to influence or
direct people’s behavior or the course of events. It determines behavior or
supervises the running of the affair of an organization.
ii.
Management: This is the organization and
coordination of the activities of an enterprise in accordance with certain laid
down rules and regulations of the organization, Management can also be said to
be group of individuals who make decisions about how a business is run.
iii.
Standard: Standard is an agreed, repeatable way of doing something. It
is a published document that contains a technical specification or other
precise criteria designed to be used consistently as a rule or guideline.
iv.
Actual Performance: This is the actual accomplishment of
a given task measured against the preset known standards of accuracy,
completeness, cost, and speed.
v.
Total Quality Management: This is a comprehensive and
structured approach to organizational management that seeks to improve the quality
of products and services through ongoing refinements in response to continuous
feedback. It is the continuous process of reducing and eliminating errors in
vi.
Budget: A budget is a financial plan and a
list of all planned expenses and revenues. It is a plan for saving, borrowing
and spending.
vii.
Benchmarks: This is the
process of comparing one’s business processes and performance metrics to
industry bests and /or best practices from other industries. Dimensions
typically measured are quality, time and cost.
viii.
Deviations: This is the act of deviating from a
standard or norms.
ix.
Errors: This is deviation from accuracy or
correctness; it is a mistake, fault or misdeed made.
x.
Performance Gap: This is a diagnosis-oriented
analysis that pinpoints where an organization or individual is not doing what
needs to be done by comparing current conditions with the expected, desired or
required conditions.
BIBLIOGRAPHY
Chandan J.S
(1989) “Management Theory and practice”, New Delhi: Vikas publishing house PVT
ltd.
Ejiogu .A
et.al (1995) “Readings in organizational behavior in Nigeria, Lagos: Malthouse
press Ltd, Pages 248-250,254.
Kuye O.
(2001) “Management theory and philosophy – An expository approach”, Lagos:
Harry – Dons ventures, Pages 57, 60, 61.
Kuye O.
(2004): Management concepts and process – An expository approach, Lagos: Harry
Dons venture, pages 169-171
Lorange P.
and Morton S. (1974) “A framework for management control system”, Sloan
Management review, Pages 44-46
Omotosho P.E.
(2001) “Essentials of Management – A modern approach”, Lagos: concept
publications Page 72
Ogbeche
(2001) Decision Theory in Business, Lagos: Philglad Nig Ltd, Pages 289,299.
Tatiana
Sandino (2007) “Introducing the first management control systems: Evidence from
the retail sector”, California: The Accounting Review, Vol. 82. No1.
The European
court of auditors (1998): “European implementing guidelines for INTOSAI
auditing standard”
Wang L.
(2005) “Linking Management control system with product development and process
decisions to cope with environmental complexity, international journal of
production research Vol.43, No. 12.
The complete part of
this project is available for sale
PROJECT
PROPERTIES
|
Project Status
|
Available
|
|
Number of Chapters
|
5
|
|
Number of Pages
|
70
|
|
Number of Words
|
9,189
|
|
Number of References
|
10
|
|
Project Level
|
B.Sc.
|
|
Price
|
N10,000 (Non-Negotiable)or USD50 in US Dollars
|
|
Abstract, Sample of Questionnaire are included
|
|
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