Influence of Human Capital on Organizational Performance as Mediated by Management Control System and Operational Risk Management

Abstract

Today, business in our world is experiencing systemic failures that affect the performance of the company. Mostly, through the use of financial measurements, corporate success is viewed at their level of effectiveness.  This study explored the mediating effect of the management control system and operational risk management on the impact of human capital on organizational performance.  This was a quantitative research with a correlational research design. The study employed self-constructed research instruments with Cronbach Alpha of human capital 0.893, Organizational performance 0.855, and operational risk management 0.833 and management control system 0.894. The respondents were made up of 439 (10%) of the Institute of Chartered Accountant Ghana members who were conveniently sampled and answered an online distributed questionnaire. The results of the study revealed that management control system and operational risk management partially mediate the relationship between human capital and organizational performance. The research recommends that the intervention role of the management control system and operational risk management has shown to impact positively on organizational performance and human capital. Therefore, the implementation of a management control system and operational risk management must be paramount to the achievement of organizational performance from the viewpoint of chartered accountants in Ghana.

Keywords: Human Capital, Operational Risk Management, Management Control System, Organizational Performance.

DOI: 10.7176/RJFA/11-10-08

Publication date:May 31^st 2020