Internal Control System and Service Delivery

Abstract

The purpose of carrying this research was to examine the effect of Internal Control System on Service delivery in the hotel industry focusing on the Source of the Nile Hotel Jinja. The research was guided by three objectives namely, to establish the effect of control environment on service delivery, to assess the effect of risk assessment on service delivery and to examine the effect of control activities on service delivery. The research adopted a descriptive cross-sectional study design with a quantitative method to carry out the investigation. The findings of the study showed that most of respondent agree that the control environment has an effect on service delivery in the hotel industry. In the same they generally agree that also risk assessment has a tremendous effect on service delivery, and it was also ascertained that most respondents agree that control activities also have huge effect on service delivery in the hotel industry. The findings further confirmed that there was a moderately strong relationship between the factors of Internal Control systems and the level of service delivered in the hotel industry. In conclusion, it can be asserted that Internal control system comprising of the control environment and control procedures need to be adopted by all directors and management of hotels so as to achieve its objectives by ensuring practical, orderly and efficient conduct of the organization. It was recommended that the hotel owners needed to adopt the highest level of asset monitoring software to help it curb fraud coming as a result of misappropriated hotel assets and finances, that hotel supervisors be given adequately high payment and a strict code of conduct so that they do continuous monitoring and evaluation aimed at keeping a very high standard of operation at the hotel, that security systems and all necessary apparatus needed to be upgraded, through adopting things like online surveillance cameras, drones, and screening of all bags and likely areas of bleaching internal control procedures. Similarly it was also recommended that best customers be awarded tokens of appreciation on a yearly basis like trips abroad, television sets, phones so that customer’s level of satisfaction is increased. The areas of further study included; the need to research on the effect of credit accessibility on capitalization of Small and Medium Enterprises, to examine the relationship between maintaining an effective supply chain on the profitability of a company, and also to research on the role of an effective organizational structure on the performance of an organization.