THE IMPACT OF INTERNAL CONTROLLING ON THE EFFECTIVENESS OF AN ORGANIZATION THE CASES OF ADAMA INDUSTRIAL PARK.

Control represents a process through which managers ensure that resources are procured and used efficiently and effectively to meet the goals of the organization. It is a dynamic function interrelated with the other management functions, and it plays a role of critical determinant in achieving organizational success. Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibility for deviations from standards lies. The paper was done on 3 industries (Antenx texitile plc, Jiangsu sunshine wool textile, and kingdom linen Ethiopia) aimed to determine the impact of internal controlling on effectiveness of the three manufacturing companies. This paper analyzes the internal controlling process of the industries. The general objective of this study was to investigate the impact of controlling on effectiveness of Adama Industry Park. The study followed quantitative approach and it was descriptive and explanatory research design. Both primary and secondary data were used the primary data were collected through using questionnaires. The questionnaire were adopted from previous research and measured on five point Likert scale used to collect data from the respondents. A stratified random sampling technique was used to select a sample of 109 respondents from a target population of 149 employees of management member. The Data obtained was analyzed using Statistical package for social science (SPSS), Version 20. Descriptive and inferential statistics were used while analyzing data. Thus, the result of correlation analysis evidenced controlling environment, operational controlling and controlling activity had statistically positive and strong relationship with organizational effectiveness. Information and communication had positive and moderate relationship with organizational effectiveness. From the results of this study, control activity contribute more to organizational effectiveness to Adama Industry park and operational controlling and controlling environment have also a big impact for the effectiveness of the organization. The study suggest that the management of company should have to work more on internal controlling to strength their internal controlling activity through mechanism of periodically evaluating the effectiveness and functioning of internal control system as well as timely communicates internal control deficiency to take corrective action immediately in order to achieve a better organizational effectiveness result.2