Management control systems case study from the national commercial bank in Albania

Abstract

This paper analyzes the Management Control Systems (MCSs) of the National Commercial Bank (NCB), operating in Albania, through the relevant framework of Object of Control [1]. The aim of this paper is to examine whether the MCSs help in aligning the actions of the management and employees with the strategies of this bank. Semi structured interviews were conducted to the managers of two branches of NCB in the city of Korça in order to understand the presence of this approach. The results of the interviews confirmed the presence of the components of the object of control (results, actions and personnel/cultural controls) in NCB. The bank controls the results of its employees and managers through the Performance Appraisal Systems. Employees’ and managers’ performance evaluation is the instrument, through which the bank plans their career and bonus. The budget constitutes the financial results control system. NCB has well-defined action controls through strict written rules, procedures and policies that restrict its employees’ actions. Personnel controls are exercised selection, training, evaluation, sustainability and development of human resources. Cultural controls are created through codes of conduct, ethic codes and socialization among employees at various events and parties, organized by the bank.