ASSESSMENT ON THE APPLICATION OF MANAGEMENT CONTROL SYSTEM IN ADDIS ABABA CITY ROAD AUTHORITY

Abstract

The main aim of the study was to assess the Application of Management control System (MCS) and Challenges in Implementing Management control system the case of Addis Ababa City Roads Authority. This research was used descriptive research design because it enables the study to clearly investigate the characteristics and nature of the study undertaken. The data was gathered from primary sources through the use of structured questionnaires and interview.The researcher applied systematic sampling technique because the selected sample list can be easily accessed from twenty eight departments so as to obtain fairly and easily the required sample size of 350.The study utilized both quantitative and qualitative data analysis techniques. To answer the research questions, descriptive statistics such as mean, standard deviation, percentage and frequency tables were used. The finding shows that in the organizational strategic planning and management the AACRA lacks observing and forecasting possible scenarios which limit its ability to see the alternative strategies.The study revealed that the organization evaluation system is by comparing actual performance with predetermined target.The organization Control over business is achieved by the corporate parent principally by monitoring how well the budget is on target and Budget follow ups and variance analysis undertakes at least quarterly. The recommendation that was forwarded AACRA should make a tradeoff of using between financial and non- financial measures and extend to the emerging widely recommended performance measurement system.