Ethiopian Construction Works Corporation

Abstract

This study examined the application of management control system in Ethiopian Construction works Corporation. The application of management control system in organizations is vital to sustain business profitability and competitiveness. Effective management control systems have paramount benefits to the success of the organization by integrating planning, budgeting, performance measurement and rewarding and compensation. Managers play an important role in applying effective management control system so that they can achieve their organizational goals. The objective of the research was to assess the application of management control system in Ethiopian Construction Works Corporation. The descriptive research design was undertaken by using semi-structured questionnaire and purposively conducted interviews. Both quantitative and qualitative data collecting techniques were used in this research. The research had done based on the responses of professionals who are working in the corporation. The data was planned to collect from 301 respondents by using self-administered questionnaire and 5 interviewed managers. The final response rate was 258(85.71%); based on this the analysis was carried out. The findings revealed that the strategic planning and programming practice in the corporation was not satisfactory i.e. it has a mean score values of 2.64. According to the response of the respondents the budgeting system of the Corporation is found at satisfactory i.e. it has a mean score value of 3.26. Besides, the performance measures implemented in the corporation were found at satisfactory i.e.it has a mean score value of 3.09. The application of management control system in the corporation was not satisfactory in the case of rewarding and compensating employees which a mean score value of 2.93. In conclusion, the overall application of management control system in the corporation is found at a mean score value of 2.98 which is not satisfactory and encouraging.