| Abstract: | This study investigates the effect of management control systems (MCS) on the organizational
performance of Berhan Bank S.C. at its Head Office. Utilizing a diverse sample of 200
employees across different demographics, a quantitative research method was used to address
the research objective. Simple random sampling was used to select respondents from the study
population. In order to collect data, a questionnaire was developed and administered to
respondents to obtain primary data. Descriptive and Inferential data analysis method was used
to analyze the gathered data with the help of SPSS software. The research provides
comprehensive insights into the bank's strategic planning, performance measurement, internal
control mechanisms, and the balanced scorecard (BSC). The findings reveal a generally
positive perception of the bank's organizational performance, with effective strategic goal
achievement, customer satisfaction, and operational efficiency. However, maintaining
motivated employees emerged as an area for improvement. The study highlights the positive
influence of the MCS on the bank’s financial stability, customer satisfaction, and internal
processes. Correlation and regression analyses indicate strong positive relationships between
MCS components and organizational performance, underscoring the significance of financial
controls and performance monitoring. Based on the findings, recommendations include
continuous refinement of the MCS, fostering innovation and adaptability, enhancing
performance measurement and analytics, and improving employee engagement and motivation.
These strategies aim to optimize the MCS, promote a culture of continuous improvement, and
drive sustained organizational success. |
