The Application of Management Control System in Ethiopian Commercial Banks
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Date
2021-02
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A.A.U
Abstract
This paper attempts to investigate the application of management control system in Ethiopian Commercial Banks.Banking sector is the most successful among the financial institutions in Ethiopia; however, there is practically no formidable study on management control system about this sector. The objective of this study is to assess the application of management control system in Ethiopia Commercial Banks. An institutional based cross sectional descriptive study was conducted in the selected commercial banks of Ethiopia which are functioning in Addis Ababa. The study used both quantitative and qualitative study approaches. Study population for the survey was CBE employees mostly mangers of the banks.From the total of 18 commercial banks in Ethiopia on the basis of the establishment date and category as eldest, older and younger banks the researcher purposively selected 6 commercial banks and examined in this study.The total number of 219 respondents drown from CBE employees. Stratified sampling technique was
appliedso as to obtain the required sample size of 219 on the basis of the establishment date. Primary data was collected through self-administered questionnaire. A questionnaire with five Likert scale for the survey which is mainly used for quantitative part. STATA software package was employed to perform statistical analysis. Findings were displayed using tables and charts.The result of the study shows that CBE’s apply various management control practices and techniques such as planning and control, strategic planning and management, performance measurement, and compensation and benefit plan that contributes for the management control system in Ethiopian commercial banks. Key words: Management control system, commercial bank, planning and control, strategic planning management, performance measurement, and compensation and benefit.
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Keywords
Management control system, commercial bank, planning, planning management, performance measurement