IMPACT OF INTERNAL CONTROL MECHANISM FOR SUCCESSFUL OPERATION IN AN ORGANIZATION
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
In this chapter, the researcher intends to look and conduct research on the Impact of Internal Control Mechanism for successful operation in an organization particularly First Bank of Nigeria, Kaduna South Branch.
According to Weber (2010), define impact “as a powerful effort that management has in order to perform their function effectively and to achieved their goals or objective.
According to Benarivo De Guisppee (Augustan Gill, 1943), he said that internal control is a plan of organization and all of the coordinate methods and measures adopted within a business to safeguard its environment, check it is effective and efficient and encourage adherence to prescribed managerial policies.
Louis Fisher (2004) said that Operation is an organized activity in an organization that involves several people performing different task in order to meet organizational goals.
Some of the interesting areas about the topic is as follows:
- Fraud and Error Prevention: According to Adebayo Adedeji (1979), the responsibility for the prevention of frauds and errors in organization is the responsibility of management, which is usually achieved through the implementation and continuing operation of adequate systems of internal control.
- Discover Good Internal Control System: Rober H. Haverman (2004) said that a good internal control system should have a proper coordination and communication network for decisions and policies of management to be effectively communicated throughout the organization and the result thereby reported back efficiently.
1.2 STATEMENT OF THE PROBLEM
The most serious problem hampering the smooth operation in public and private sectors at all the levels has been fraud, errors, defalcations, mismanagement and abuse of office.
Applicants are complaining bitterly that First Bank of Nigeria, Kaduna South branch do not allow staff to go on training and development having worked for specific period of time with the bank.
Another paramount problem facing the organization as regard to the recruitment, selection, training and development of applicants or candidates during and after an interview because of the pressure by the top official to select their candidate of the applicants regardless of their betterment.
No fair play for promotion and training in the organization
The condition of work is not adequate and the problems of motivation and grievances settlements procedures are not adequate as well.
Over the years, various management has been trying to institute a corrective measure. In spite of all these, a lasting solution is still far reached. At times, one tends to wonder if at all the numerous internal control measures instituted in public and private organizations do function, and if they do, to what extent
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