Online ISSN: 2520-4521 |
Print ISSN: 2522-6606
Management Control System and Organisational Effectiveness of Deposit Money Banks in Nigeria
Authors: Yemisi Oluwafunmilayo AYORINDE, Ayoola Abayomi AREMO
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 It was suggested that banks should dedicate efforts in overhauling their weak and outdated management control mechanism.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.