Effect Of Internal Control System On Employee’s Performance: The Case Of Commercial Bank Of Ethiopia Kolfe District

Abstract

The objective of this study was to investigate the effect of internal control onemployee performance in case of CBE Kolfe district. The descriptive findings of the study shows that the CBE manager did not design risk controlling mechanism and also they did not pro-actively asses the likelihood of occurring risks in the study area. The monitoring activities, risk assessment, control activities, information & communication have a strong relation with employee performance. Multiple regressions were used to identify the extent to which explanatory variables predict employee performance in the study area. The The bank administrative bodies at a different level within the CBE in kolfe district are strongly recommended to design risk controlling mechanism and they also suggested to pro- Actively asses the likelihood of occurring risks. Next, the management of CBE improve the integration and alignment of organizational and individual objectives to enhance implementation of internal control system in the bank; The management of CBE are strongly advised to improve the skill gap that exists between employees and managers of the bank for better internal control and employee performance in the bank; The management of CBE are politely advised to improve the complexity and clarity of management tools to enhance implementation of internal control and for better employee performance in the bank. Finally, the management of CBE ought to give primarily focus for monitoring activities so as to enhance the employee performance in the bank; followed by risk assessment, control activities, information &communication in the study area.; The management of CBE improve the integration and alignment of organizational and individual objectives to enhance implementation of internal control system in the bank;