The Role of Human Resources Competence, Internal Control System,
And Financial Accountability in Enhancing Organizational
Performance: The Moderator Role of Human Resource Managers
1AHMAD I EL-KHATEEB, 2AHMAD A. ALMOHTASEB, 3JEHAD M. ALFARAJAT
College of Business and Economics, Al-Hussein Bin Talal University, Ma'an, JORDAN
Abstract:- This study examines the role of internal control systems, human resource competencies, and financial
accountability in organizational performance as viewed by human resource managers. The research was carried
out in Jordanian business organizations. The sample included executives from 130 companies listed on the
Amman Stock Exchange. A questionnaire was created and distributed to collect data, which was then analyzed
using SPSS version 25. According to the study, financial accountability, internal control systems, and human
resource competencies all contribute to the improvement and enhancement of organizational performance, and
human resource managers play an important role in this. According to the study, organizations should strive to
include such components at all levels to achieve effectiveness and gain a competitive advantage.
Keywords: Human Resources Competencies, Internal Control System, Financial Accountability, Human
Resource Managers, Organizational Performance, Business Organization.
Received: March 5, 2022. Revised: March 7, 2023. Accepted: April 9, 2023. Published: May 30, 2023.
1 Introduction
Human resource managers (HRM) must play an
active role in strategically improving an
organization's performance in today's competitive
environment. Many human resource managers are
not capable or qualified to lead their organizations
to success. Even though human resource managers
are aware of their job responsibilities, failure to
demonstrate the organization's performance
resulted in a significant decrease in the human
resources department in various companies.
Managers can improve their human resource
competencies (HRC) by gaining in-depth
knowledge and putting it into practice, which will
improve their organization's performance [50].
The proper combination of competencies will result
in improved organizational performance.
Competency is defined as a skill, knowledge,
experience, attitude, trait, or ability that enables
people to be progressive in their interactions with
others at work, home, school, and in the
community. They forecast the success of the human
resource (HR) profession and vary according to the
nature of the position held by HR professionals. HR
professionals should build trusting relationships
with their customers. Competency has many
meanings and is still one of the gentlest terms in
management development, occupational, and
organizational literature. Six competencies are
critical: operational leadership, problem-solving
abilities, customer orientation, communication
abilities, team orientation, and results orientation
[37].
Organizations today face a complicated, dynamic,
and intimidating environment; much thought has
been given to regular businesses and their
adaptations to changing environmental conditions
[5,33], and ways to enhance the performance by
flexibility, efficiency, and effectiveness [34]. In line
with this, an internal control system (ICS) is a
method that allows managers to assess how well an
organization is run and how its resources are used.
This approach helps to bring order to organizations
by providing direction and consistency. An
effective method of centrally controlling provides
supervisors with ways to deliver their programs
with responsibility, as well as the logical assurance
that they will meet the established targets and
objectives. [20] In addition to HRC and ICS, the
human resource department of any organization has
a dynamic relationship with the finance department,
even though both departments are considered to be
poles apart in the sense that human resources speak
people's language and finance speaks numbers.
Despite their differences, the human resources and
finance departments cannot be considered
separately; they must work together like DNA
strands for an organization to succeed. [45].
According to Salam (2020), one of the primary
responsibilities of the HR manager is to determine
whether the organization has the resources
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necessary to improve its expertise and capabilities.
They also need to keep the talent involved, which
means that to retain and achieve this goal, the
finance department must budget, hire new
employees, and arrange training programs for the
existing workforce to improve their work
performance.
This is the point at which the finance department is
unable to calculate the return on investment as well
as justify the value due to issues and struggles in the
cost justification. It is necessary to remove these
cultural barriers or hurdles between both
departments, which will allow them to work
together more effectively. One way to overcome
this barrier is to use technology and analytics to
provide quantifiable results of any HR activities to
the finance department. This enables the HR
department to speak the language of finance by
utilizing various standards such as employee
engagement and customer satisfaction scores,
human capital ROI, compensation and financial
resource allocation, and so on, which can assist HR
in rationalizing their financing request; this barrier
is the use of technology and analytics which will
provide quantifiable results of any HR activities to
the finance department. This enables the HR
department to speak the language of finance by
using different standards such as employee
engagement and satisfaction score from the
customers, human capital ROI, compensation and
allocation of financial resources, etc which can
assist HR to rationalize their financing requests
[42]. The study derives its significance from this
point by emphasizing that human resource
competencies, internal control systems, and
financial accountability (FA) are what HR
managers should focus on and strive for to improve
organizational performance. Jordan's organizations
in the business sector have a low achievement level.
This is an issue that is frequently addressed at
various levels within the country, despite Jordan's
regional expertise in human resources and Jordan's
outstanding respected ability in various fields such
as information technology, communication, and
administrative sectors [33, Altamony et al., 2016].
This study takes into account the aforementioned
factors and provides a comprehensive view of how
HRC, ICS, and FA should be considered by HR
managers working in Jordanian business
organizations to improve their company's
performance. As a result, this study focuses on the
role of ICS, HRC, and FA in organizational
performance OP via HR managers.
Several studies have focused on internal control
systems and human resources management [2, 20,
39, 33] However, to the best of the researcher's
knowledge, none of these studies have focused on
how HR managers can act as a bridge builder to
improve OP through human resource competencies,
internal control systems, and financial
accountability in the context of Jordan. The
organizations intend to create and improve their
operations by exploring the available channels of
direct communication with their customers and
ensuring that they are adequately supported by
competent human resources. [9]. A reciprocal
relationship between a consumer and an
organization has a significant advantage in that it
constantly improves the quality of organizational
resources and ensures customer interactions. It is
well known that the HR manager is in charge of
improving management tasks such as coordination,
planning, deployment, and channel evaluation. As a
result, this study fills a gap in the literature by
adding to what has already been presented about
HRC, ICS, and FA, their relationships, and how
they influence OP through HR managers. There is a
lack of domestic research that contextualizes this
area in Jordan.
2 Literature Review
2.1 Human Resources Competencies
Human resource is one of the most important
resources that a corporation owns, and as a result,
all efforts from the individual to the institutional
levels are directed toward determining a decisive
way to make the most of the human component that
diode to the event of competencies in human
resource management. It is consistent with the
search for characteristics and interests that
employees should have, which can then be
appreciated, rewarded, and recognized to help
employees work more efficiently, either
individually or as part of a team. This type of
operation ultimately assists in improving their work
and directing them towards the proper career path
so that the individual achieves happiness while the
corporation's objectives are met [24].
These competencies are not only developed through
training, but also through other factors such as
human resource development, the installation of
body structures, structure development, plans, and
methods, and the creation of a legal and institutional
framework that allows organizations to strengthen
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their capabilities at various levels and sectors.[1].
These competencies were classified as data, ability,
and perspective. This ability plays a significant role
and is a key factor in the corporation because it
contributes to the event and improvement of the
organization's capability and makes it capable of
facing challenges and difficulties as well as
developing a good and fortunate strategy. [3]. It is
defined by a person's level of proficiency in
performing a specific task. Among the various
reasons for a company's failure are a lack of a
skilled workforce and a lack of strong relationships
between employers and employees. As a result, the
organization devises strategies and invests
resources in acquiring and developing versatile
employees to stabilize and establish the
organization, as well as worker commitment to
achieve the organization's goals. [18]. According to
the literature, all HRC have a significant correlation
with OP [28]. The preceding discussion leads to the
following hypothesis:
H1: Human resource competencies reflect a
positive effect on organizational performance.
2.2 Internal Control System
The internal system is the combination of
maneuver, attitudes, ambition, rules, and efforts
suggested by people in a corporation working
together to produce logical assurance that the
organization can achieve its goal and purpose.
Having a solid central control system means that the
organization can promote effective and efficient
business procedures that result in the production of
goods and services that are consistent with the
company's mission. Furthermore, it protects
supplies from loss caused by misuse by confirming
adherence to the rules, policies, contracts, and
management directives. As a result, the central
control system creates and maintains consistent
monetary and handling data in a suitable informing
system. Risk assessment, control environment
communication, control activities, and monitoring
are all examples of central control systems. [47].
This internal control system can establish the
company's style and influence people's control
awareness. It serves as the foundation for the rest of
the central control system's components by
providing structure and discipline. It includes
elements such as ethical values, integrity, and
proficiency of people entities, management
philosophy, and operating style, and how leadership
assigns responsibility and authority, as well as
organizing and developing its workforce [40]. The
Control system component is implemented to help
the company achieve its goals, protect its assets, and
measure its performance. Companies should
develop control activities both automatically and
manually to achieve the company's goals and
objectives constructively and methodically, thereby
lowering the risk of failure. [24]. This control
system element can be described as a continuous
process that points to providing the leadership and
key associates with foregoing signs of progress,
whether beneficial or dismissive, in the process of
achieving goals. This procedure assists the
company in calculating or evaluating the standard
of accomplishment as time passes and recognizing
its control capability. This aspect of internal control
aids in the decision-making process ensures
accountability and serves as the foundation for
evaluating and learning. [33]. The literature [30]
found evidence that internal control system has a
positive relationship with organizational
performance. Based on the given literature, the
research has generated the preceding hypothesis:
H2: Control system inside the company has a
positive impact on organizational performance.
2.3 Financial Accountability
Human Resources and Finance departments are
frequently viewed as separate sections because they
do not communicate in the same language, even
though Human Resources understands the
linguistics of people and their outcomes. In
contrast, an investor understands the language of
numbers and ROI (ROI). Both departments have
different core values, with Human Resources
emphasizing people as an asset and Investors
emphasizing quantifiable assets. Regardless of
these differences, Finance and Human Resources
cannot coexist and must connect like the shores of
DNA for the company to thrive and prosper. As a
result, the functions of both departments have
similar or intersecting goals and rely on each other
to carry out organizational strategies. Employees,
under this, are the driving force that creates value
for the organization. HR is responsible for
promoting employee success, which helps to
achieve one-upmanship by creating a relaxing and
happy work environment. Happy employees mean
low turnover, which directly affects or satisfies
investors because it means a higher return rate for a
flourishing business. [19]
The primary responsibility of human resources is to
ensure that the company has sufficient assets with
appropriate skills and competencies. It must also
ensure that the talent is engaged, which means
increasing retention. To do so, HR relies on Finance
for budgeting, new employment ventures, or
coaching current employees to increase workforce
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commitment. That is why Finance strives because
they need to have a reason for their investments that
cannot be measured in numbers. In this case, how
can Finance collaborate with the HR department to
help resolve the problem? Well, one critical
improvement that each department can implement
is the use of generation and analytics to help
quantify HR sports or measure the impact of any
program. As a result of metrics, HR can
communicate with the finance branch and the
business language. [16].
Human beings have grown to be possible through
technology, tracking, and reporting in any
commercial enterprise location. Prior informing
allows businesses to anticipate activities and make
adjustments to better prepare for what lies ahead.
Requesting a budget from Finance becomes even
more honest now that the enterprise case has a
scorecard with solid outcomes. By allowing HR to
articulate the values, they communicate about with
metrics such as worker engagement scores, hiring
ratios, or retention rates, all of the records are
provided, which is critical to success. This
demonstrates the financial accountability of Human
Resources Management. [42,36,12] define financial
attitudes as a personal inclination toward financial
matters (2020). It can be defined as a combination
of concepts, emotions, and learning-related
information that significantly influences an
individual's favorable reaction. A financial mindset
is important because it influences a person's
behavior on many aspects of economic concerns,
such as borrowing, adverse monetary events,
saving, and risk-taking. [45]. Individual ideals
about various aspects of financial savings are
reflected in financial attitudes. According to [26],
financial attitudes influence personal financial
behavior. People who do not respond wisely to
financial issues are more likely to have poor
financial management.
However, effective management is thought to be
primarily based entirely on financial control
knowledge. Individual monetary attitudes influence
character thinking, valuation, and character
judgments about financial control strategies for
themselves and their businesses. Financial attitude,
according to [7], has a significant influence on
personal financial management. Furthermore, an
improvement in financial attitude is likely to
improve personal financial management.
Accountability in financial management has a
significant positive impact on organizational
performance [32]. In regards to the given content,
the study has produced the below-mentioned
hypothesis:
H3: Financial responsibility in phrases of human
resource management has a major effect on
organizational performance.
2.4 Mediating position of HR managers
withinside the courting among HRC, IC and
FA with OP:
Human resource performance, according to
strategic HRM researchers, may also result in
higher enterprise overall performance and the
reassertion of long-term competitive
advantages.[48]. In a brand new unrestrained global
economy, the HR department faces new challenges
in delivering the necessary value to establish and
maintain competitive advantages. "To perform
effectively, HR practitioners must master the
abilities required, and mastery of HR knowledge
comes from understanding the concepts, language,
reasoning, research, and practices of HR."
(Brockbank et al., 1999).
HR managers, according to Lawler and [27], must
be more productive strategic business partners.
Ulrich (1998) went on to say that HR professionals
should transition from strategic enterprise partners
to company contributors. Some studies [22, 39,48,
35] have found a link between HR competencies
and organizational success. According to [28], a
new group of HR professionals sees the potential to
turn human capital strategy into a long-term
competitive advantage. They claim that the 1990s
served as a wake-up call for the HR industry. More
than ever, people are expected to be creative and
productive. The strategy for being innovative and
boosting productivity includes having the skills
necessary to achieve these results.
[35] found a negative correlation between HR
technology and strategic. contribution, while a
positive correlation was found between the two.
This is not entirely in line with the global HRCS's
findings. Only one factor, strategic contribution,
was found to have a favorable relationship with
Europe's financial competitiveness. Nevertheless, it
was discovered that four of the five domains were
positively related to global economic
competitiveness. Fourth, all disciplines have a lot of
relationships with one another. According to [11],
the problem with HR playing a more significant role
at the management table is that the assumptions for
its benefits have grown. The fact that requirements
are not only changing but also growing makes this
challenge even more difficult. In addition to
traditional HR specialties, HR is now sought after
for expertise in growing companies and their
systems, as well as overseeing significant changes
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to increase competition. Such accomplishments call
for proficiency in strategic contribution and the
ability to carry out human resource offerings.
Standard HRM processes like hiring, choosing, and
paying employees were connected to qualified
HRM capabilities. On the other hand, enterprise-
related potential showed that the candidate
understood the industry and could carry out a
competitive strategy. Both improved HRM
efficiency, which had a big impact on different
financial performance metrics. [22].
Internal management is vital in maintaining
stability, administration, and area in groups and
groups of all sizes. It's regularly utilized in everyday
activities, and it offers managers a manner to make
sure that the initiatives and packages they are
operating on are assemblies the organization's
desires and objectives. The success or failure of an
internal control system, on the other hand, depends
on whether employees at all levels of the
organization, including supervisory and support
staff, recognize it as being effective. Every aspect
of the business is impacted by the internal
management system, which is more of an integral
component than a feature. Internal control systems
serve four different objectives:
1. To encourage orderly, cost-effective, efficient,
and effective operations and the production of
high-quality products and services that are in line
with the organization's objective.
2. To protect resources from waste, misuse,
mismanagement, errors, and other sources of loss.
3. Ensure that all laws, rules, contracts, and
management orders are followed.
4. Must create and manage reliable financial and
managerial data and present such data accurately
in timely reports [30].
To accomplish the aforementioned objectives, an
organization needs to establish a reliable internal
control system. Nevertheless, because it is not given
the right attention and knowledge, a subject of this
importance is frequently misunderstood or
undervalued. To accomplish the goals outlined above,
an organization needs to create a reliable internal control
system. However, a subject of such significance is
frequently misunderstood or undervalued because it
receives insufficient attention and education. This
includes, if necessary, enhancing current policies,
practices, and guidelines to ensure that they don't
contradict or contravene the institution's commitments or
the rules that govern how it operates. By [36], financial
attitudes are defined as a personal inclination toward
financial matters (2020). It may be defined as a mix of
concepts, emotions, and learning- related information
that significantly affects a favorable reaction of an
individual. Financial attitude is critical since it affects an
individual’s behavior in many facets of financial
concerns like borrowing, hostile economic occurrences,
saving, and risk-taking [45]. Financial attitudes reflect
the individual ideals about different elements of financial
savings. [26] stated that personal financial behavior is
affected by financial attitudes. Based on the above
literature about the association of human resources
competencies, internal management systems, and
financial accountability with the company’s
accomplishments. This current study investigates the
mediating role of HR managers in this relationship and
therefore, formulates the following hypothesis:
H4: HR managers play a moderating role in
improving the relationship between HRC, IC,
and FA with OP.
2.5 Theoretical Framework
Every business or organization must have adequate
human resources. Researchers from all over the
world have created and successfully implemented a
variety of HRM techniques to maximize the
performance and productivity of human capital.
[10]. Businesses must take numerous steps to
improve corporate performance because it is a
highly complex and diverse collection of
circumstances and behaviors that determine
organizational performance. (Khan et al., 2020).
The competence of human resources, internal
control mechanisms, and financial accountability in
HR management has been the main foci of the
current study. Competencies related to knowledge,
abilities, talents, and personality traits of human
resources have a direct bearing on their
performance. [21]. At the same time, financial
accountability is an internal factor that affects
financial management and source expertise [26].
Financial accountability, human resource
competency, and an efficient internal control
system all contribute to synchronization, excellent
cooperation, and the effective use of finance in
cooperatives. [10].
Fig. 1: Research Model.
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3 Methodology
3.1 Study Sample, Design and Data
Collection
A convenience sampling technique was used in the
study. The sample size included managers from 130
of the 195 companies listed on the Amman Stock
Exchange, which is a suitable sample size based on
population size. [43]. Since the study was
quantitative, the data was gathered using a
questionnaire. The questionnaire was distributed to
the study sample through direct visits by the
researcher and collaboration with human resources
departments. After the distribution process was
completed, 78 questionnaires were received;
however, 8 of them were rejected because they were
incomplete; thus, a total of 70 questionnaires were
included in the study. Table 1 goes into greater
detail about their demographics.
Table 1 Demographic details of chosen Participants
Category
Density
Percentage
Male
46
65.7%
Female
24
34.3%
20-29 years
15
21.4%
30-39 years
13
18.6%
40-49 years
26
37.0%
50yearsand above
16
23.0%
Bachelor
46
65. 7%
Masters
19
27.2%
PhD
5
7.1%
1-5 years
3
4.2%
6-10 years
27
38.7%
11-15 years
40
57. 1%
3.2 Study instrument and Analysis
The study instrument was divided into two parts.
The first part included items considered to be
independent variables of the study, such as human
resource competencies, internal control system, and
financial accountability, as well as the impact of
these variables on organizational performance.
After reviewing several studies, the items for this
dimension were created such as, (Al-Taan, 2018;
Al-Asadi & Talib, 2017, 1, 46] The second section
of the questionnaire included statements graded on
a 5-point Likert scale. These statements focused on
managers' roles in improving organizational
performance while taking into account human
resource competencies, internal control systems,
and financial accountability.Statements for this part
of the questionnaire were developed after reviewing
the study conducted by (Al-Rubaie & Ali, 2018).
SPSS version 25 was used to analyze the data
collected from the questionnaire. The results were
analyzed using descriptive statistical analysis,
which included the mean and standard deviation
values, as well as a standardized beta coefficient to
demonstrate the impact of independent variables on
improving dependent variables. The Pearson
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correlation test was used to examine the
relationship between independent variables, and a
Multiple Regression Analysis was performed to
determine the impact of all independent variables
on the dependent variable.
3.3 Validity and Reliability
Before the issuance of the questionnaire to the study
sample, it was sent to 7 relevant academicians in the
field from various institutions to assess whether the
questionnaire served the purpose of the research
study or not. Moreover, a pilot observation became
additionally carried out with 20 members to make
certain the validity and reliability of the gadgets
withinside the questionnaire. The questionnaire
consisted of 60 items measuring human resources
competencies, internal control system, financial
accountability, company’s performance, and the
duty of managers. These items were measured on a
5-point-Likert Scale ranging from 1-strongly
disagree to 5- strongly agree. Moreover, to check
the reliability of the questionnaire Cronbach Alpha
was used. All the items in the questionnaire were
above the cutoff (0.7) and ranged between 0.86
and0.95 which shows that all the items calculated
were adequately reliable. Table 2 shows the
reliability result of the questionnaire.
Table 2: Reliability test of questionnaire
Variables
Number of Items
Reliability Cronbach
Alpha
Human Resources Competencies
10
0.86
Internal Control System
10
0.85
Financial Accountability
10
0.84
Managers’ role considering the 3
independent variables to improve
organisational performance.
30
0.95
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4 Results
Table 3 represents the study's explanatory statistical
analysis, with the role of managers having a mean value of
4.55, which is at a high level, human resources
competencies coming in second with a mean value of 4.33,
and internal control system coming in third with a mean
value of 4.31. Financial accountability came in last, with a
mean value of 3.76
Table 3: Descriptive Statistical results
Variables
Items
Mean
Std
Deviation
Human
Resources
Competencies
10
4.33
0.77
Internal
Control
System
10
4.31
0.75
Financial
accountability
10
3.76
0.58
Role of
Managers
30
4.55
0.79
Table 4 shows the significant relationship between
the variables. All except financial accountability and
internal control systems showed a substantial
relationship.
Table 4: Relationship between independent
Variables
Variables
HRC
ICS
FA
Role of
Managers
HRC
1
0.00
0.000
0.000
ICS
0.00
1
0.03
0.000
FA
0.00
0.02
1
0.000
Role of
Managers
0.000
0.000
0.000
1
*Correlation is significant at 0.000 level
The f value in Table 5 is 8.32 (P0.01), indicating that
a combination of human resource competencies, the
organization's internal control system, and financial
accountability predicts the dependent variable
(organizational performance). The table also shows a
moderately linear correlation between the
independent variables with an R-value of 0.615. The
adjusted R square of 0.33 indicates that the
independent variable can explain 33% of the
variance. The beta value indicates that, of all the
independent variables, HR competencies have the
greatest impact on organizational performance. H1,
H2, and H3 were accepted based on the results of
multiple regression analysis.
Table 5: Multiple Regression Analysis of HRC,
ICS, and FA on Organisational Performance
Independent
Variable
Beta
value
T
Sig.
HRC
0.45
13.45
0.000
ICS
0.32
0.577
0.000
FA
0.33
0.263
0.000
R
0.615
R Square
0.33
F
8.32
F. Sig.
0.00
Table 6 illustrates the impact of independent variables
and managers' roles in improving organizational
performance. The independent variables have a
significant effect on organizational performance, and
managers' involvement in considering all variables is
critical to improving organizational performance. H4
was approved based on the statistical analysis results.
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Table 6. Impact of Human Resources, Internal Control, Financial Accountability and role of Managers on
Organizational Performance
Abbreviation: Human resources competencies (HRC), Internal Control System (ICS), Financial Accountability
(FC).
5 Discussion
The objective of this study was to determine the role
played by human resources competencies, internal
control systems, and financial accountability towards
organizational performance through HR managers.
To achieve this purpose, the study formulated four
hypotheses. The study found a major impact of HRC,
IC, and FA on the OP. These findings are in line with
studies conducted by a number of researchers such as,
[37,20,43]. All of these studies suggested that human
resource competencies, internal control systems, and
financial accountability can help improve
organizational performance. Furthermore, the study
discovered HR managers' role in enhancing or
improving the relationship between the three
independent variables and organizational
performance. The current study found that managers
play a significant role in improving organizational
performance when all three variables are considered.
This finding is in line with the finding of another
study conducted by [50] as they state that HR
managers can improve organizational performance by
developing a better understanding of human
resources competencies and practicing them
extensively. Furthermore, another study by [20]
supports the current research findings by stating an
efficient structure of internal control that can provide
supervisors with the means to convey accountability
for their plan of action as well as the reasonable
assurance that the programs they manage meet the
company's identified goals. Furthermore, the study
discovered that HR managers understand the
importance of working closely with the finance
department because the accountability factor of HR is
linked with it.
As today's world faces complicated, dynamic, and
intimidating environments, much thought is being
given to everyday business and organizational
adaptation to changing environmental conditions, as
well as how to improve performance through
improved efficiency, effectiveness, and flexibility of
human resource management. [13,33]. For this
reason, all the four hypotheses formulated by the
current study have been proven empirically.
6 Conclusion
The study demonstrates that human resource
competencies, internal control systems, and financial
accountability have a significant impact on
organizational performance in Jordanian business
organizations. The reason for this could be the human
resources competency skills of managers of
organizations such as command, point of view,
expertise, and relation that contributed to the
procedure of expectation and reaction to prior
cautions to deal with numerous complexities
directing towards financial accountability on the part
of HR and finance department as well as internal and
Model
Unstandardized Coefficients
Standardized
Coefficients
Beta
T
Sig
95.0% Confidence level for Beta
Beta
Std error
Lower
Boundary
Upper Boundary
HRC
87.84
6.385
0.45
13.45
0
65.155
99.506
ICS
0.164
0.632
0.32
0.577
0
0.301
0.542
FA
0.358
0.43
0.33
0.263
0
0.571
0.699
Manager’
s Role
0.118
0.32
0.55
8.877
0.
0.182
0.544
Financial Engineering
DOI: 10.37394/232032.2023.1.2
Ahmad I El-Khateeb,
Ahmad A. Almohtaseb, Jehad M. Alfarajat
E-ISSN: 2945-1140
23
Volume 1, 2023
external control activities that resulted in the optimum
level of organizational performance.
The study has some implications for managers as well
as decision-makers. In general, there is a general
understanding of the significance of human resource
competencies, fiscal responsibility, and an internal
control system in Jordanian organizations, which is
also carried out at various stages and degrees. Internal
control systems and human resource competencies
have a significant impact on organizational
performance, whereas financial accountability is
dependent on the mutual and close collaboration of
human resource and finance departments.
This implies that organizations should strive to
incorporate such elements at all levels to achieve
effectiveness and gain a competitive advantage.
Managers play a critical role in making this process
more efficient and effective; thus, they are
encouraged to promote practices that may lead to
improved organizational performance. They should
enact appropriate human resource policies and
procedures for conducting regular assessments of
currently used channels. Create effective reporting
plans and regulations to ensure a smooth flow of
communication within the organization. Adopt a cost-
effective tool for reporting and assisting the
company's employees, such as e-mails, mobile
phones, social media, and so on.
The study recommends that Jordan's business
managers and decision-makers implement
monitoring and control activities as part of their
internal control system. Should develop clear and
precise policies that will assist employees in working
toward achieving the organization's goals and
objectives, resulting in improved performance.
Furthermore, they should develop their skills to keep
up with the dynamic and ever-changing work
environment. This study focused on what and how
questions rather than why through face-to-face
interviews or focus groups. To gain new insights,
future studies can combine qualitative and
quantitative data collection. Future research could
also look into organizational factors like company
size and industry type.
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DOI: 10.37394/232032.2023.1.2
Ahmad I El-Khateeb,
Ahmad A. Almohtaseb, Jehad M. Alfarajat
E-ISSN: 2945-1140
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Volume 1, 2023