The Role of Internal Control in Raising Employee Productivity in Jordanian Bank

Abstract

Internal control helps organizations achieve their objectives and maintain and improve their performance, and the performance of their employees. The Committee of Sponsoring Organizations of the Tread Way Commission issued an Internal Control — Integrated Framework, to help organizations in designing, implementing, and conducting internal control and assessing their internal control systems’ effectiveness, this Integrated Framework, included the five factors of control system, which are Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities. The research examines the relationship between internal control system of an organization and employee engagement, and the effect that such has on the performance of the employee in the organization, and job satisfaction. This research primarily aims at finding out the impact of internal control system on employee performance in Jordanian companies, especially those in the Jordanian banking sector. Internal control systems will influence employees’ performance in two ways, through having an effective internal control system, or through not having an effective internal control system. The research therefore tends to evaluate the extent of adherence to internal control System in Jordanian banks, its impact on the performance of employees, and finally the recommendations of the researcher.