THE EFFECT OF INTERNAL CONTROL ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF ZENITH BANK NIGERIAN PLC

ABSTRACT This project work takes a look at the effect of internal control on organizational performance using a case study of Zenith Bank Nigerian Plc. The main purpose of this study is to examine the effect of internal control on organizational performance i.e., how as internal control aid organizational performance in Zenith Bank Nigerian Plc. The research design used during the course of this study was the descriptive survey research design in which a population of 50 staff of Zenith Bank Nigerian Plc was look into. The researcher made use of stratified sampling technique and the research instrument used during the course of this research was questionnaire. Statistical package for social sciences (SPSS) was being employed to analyze data in form of frequency tables in knowing the effect of internal control on organizational performance. Findings reveals that the calculated t-statistics for the parameter estimates was (t = 3.653), P < 0.01 which is greater than tabulated t statistics (1.9960) at 0.01 level of significance. Therefore, the Null hypothesis is rejected and Alternative hypothesis is accepted, that is there is significant relationship between internal control system and organizational performance of Zenith Bank Nigerian Plc. Furthermore, findings also reveals that the calculated t-statistics for the parameter estimates was (t = 0.439), P < 0.01 is less than tabulated t statistics (1.9960) at 0.01 level of significance. Therefore, the Null hypothesis is accepted and Alternative hypothesis is rejected, that is, Weakness in the internal control system in ZENITH Nigerian Plc does not lead to frauds. Based on the findings of the study, it is recommended that the management of Zenith Bank Nigerian Plc should design more effective internal control systems by ensuring that adequate asset listings is done by management, capital assets purchased are approved by appropriate level of management and asset numbering is done to show location and protection of the assets. Also, Management should encourage staff to participate in decision making. Employees feel encouraged and motivated in accomplishing the goals of the company in which they have taken part in formulating.