THE IMPACT OF MANAGEMENT CONTROL ON WORKERS' PERFORMANCE IN BANKING SECTOR OF KARACHI

Abstract

Purpose: Using motivation crowding and self-determination theories, the study has aimed to examine the role of management control systems on employee performance in the private banks of Karachi, Pakistan. Methodology: Total 274 responses were collected from the private banks of Karachi, Pakistan using five-point Likert scale questionnaire and convenience sampling technique. However, PLS-SEM using Smart PLS version 3.2.8 has been employed for data analysis including PLS algorithm, PLS bootstrapping and PLS blindfolding. Findings: The results have shown that action controls and cultural controls have significantly positive impact on performance while personal controls and results controls have no relationship with performance. However, action control has most influence on performance followed by cultural control. Limitations: First, the study focuses upon the organizations of Karachi, Pakistan only, which restricts the context of the study. Secondly, the sample size of the study is limited and cannot be generalized. Thirdly, the study restricted to the context of Pakistan. Moreover, the considered firms for analysis are also limited due to the lack of approach and time. Implications: Bank managers have to work on the development of their controls over the employees of the Mangers should also develop some of their controls over generated by their employees. Bank managers have to develop certain policies and set procedures in order to focus on the generated results.