Abstract
The study was aimed at examining the influence of internal control system on employee performance. The population was 4,500 enterprises registered with the Nigerian Association of Small Scale Industrialists (NASSI) in Ondo State, out of which 195 randomly selected manufacturing enterprises formed the sample of the study. Primary data were collected and analysed using percentages and mean. The hypothesised model structure was analysed using ordered logistic regression with the significant level at p=0.05. The Pseudo R2 of 0.0353 indicated that the significant independent variables of the model accounted for 3.53% variation in the employee performance. Other factors which did not form part of the variables of the model accounted for the remaining variation. The study revealed that control environment and monitoring have significant effect on employee performance. The study concluded that internal control system significantly have influence on employee performance of small scale manufacturing enterprises in Ondo State, Nigeria. It was recommended that small scale manufacturing enterprises should give priority to be implementation of internal control system components since they influence employee performance and ultimately organisational performance.
Highlights
Employee performance can be called the life wire of an organisation, in that the good performance of employees may turn an unknown small business to a market leader in its industrial sector. Dapper (2013) expressed organisational performance as cost efficiency, employee productivity and organisational profitability
The population was 4,500 enterprises registered with the Nigerian Association of Small Scale Industrialists (NASSI) in Ondo State, out of which 195 randomly selected manufacturing enterprises formed the sample of the study
The study concluded that internal control system significantly have influence on employee performance of small scale manufacturing enterprises in Ondo State, Nigeria
Summary
Employee performance can be called the life wire of an organisation, in that the good performance of employees may turn an unknown small business to a market leader in its industrial sector. Dapper (2013) expressed organisational performance as cost efficiency, employee productivity and organisational profitability. Dapper (2013) expressed organisational performance as cost efficiency, employee productivity and organisational profitability. The performance of employees of small businesses tends to depend largely on their control environment. This is because, the performance that is guided by clearly established lines of authority and responsibility plus recruitment and selection of competent staff will be measurable in an environment where there is control and monitoring. It follows that compliance with organisational internal control system ensures that employee performance is done in line with policies and procedures. Things may not be done in small manufacturing enterprises based on the assumption that they have few resources to manage but every resource is valuable
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