The Application of Management Control System in Ethiopian Commercial Banks
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Date
2011-06
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A.A.U
Abstract
Banking sector is one of the most successful financial institutions in Ethiopia, however, there is
virtually no formidable study on management control system about this sector. The increasing
knowledge and understanding on the application of management control system, for the area in
which this research was undertaken by benchmarking of the same research undertaken in other
country, were taken as the major initiators of this study and were the rationale to the research.
This study focused only the application of management control system in Ethiopia Commercial
Banks even if there were different managerial issues in the banking industry at the head and
branch offices as well. An institution based cross sectional descriptive study with analytic
components was conducted in Ethiopian commercial banks which are functioned at Addis
Ababa. The study employed both quantitative and qualitative study approaches. Study
population for the survey was employees, officers and mangers of the banks. Besides, for the
qualitative part, key informant interviews were conducted with mangers and officers of the
banks. A questionnaire with five Likert scale for the survey which is mainly used for quantitative
part, and Semi-structured interview guide for the qualitative were used as data collection tools.
SPSS version J 9 for windows was employed to perform statistical analysis. Findings were
displayed using tables, and pie-charts. The regression results show that strategic planning and
management; and performance measurement have positive and statistical significant
contribution on management control system of Ethiopian commercial banks. this is as similar
result with (Sinikka 2007).Besides, the commercial banks are competing mainly in service and
many of them adapting differentiation strategy. The priority of the majority of commercial banks
is customer retention. Commercial banks are encouraging employees to upgrade their
knowledge and skill on the basis of experience or service offer to the bank. However, some
problems were also there ; human capital, benefit entitlement t, liquidity and responsibility center.
There fore, the commercial banks need to give due attention for these problems, giving and
preparing continuous training for employees and evaluating training results.
Description
Keywords
Control System in Ethiopian, Commercial Banks