Article Sidebar

Download
View Article
Statistic
Read Counter : 238 Download : 129

Downloads

Download data is not yet available.

Main Article Content

Abstract

This research aims to explore the influence of human resource (HR) competency, management control systems, leadership, and trust on financial performance at Perumda BPR Garut. Data analysis and hypothesis testing were carried out to understand the relationship between these variables. The research results show that HR competency does not have a significant influence on financial performance, but has a positive and significant relationship with leadership and trust. The management control system shows a positive and significant influence on financial performance, leadership and trust. Leadership does not show a significant relationship with financial performance, while trust shows a positive and significant relationship with financial performance. In the mediating role, leadership does not mediate the influence of HR competency on financial performance, while trust mediates the influence of the management control system on financial performance. This research emphasizes the importance of effective management control systems and building trust in organizations to improve financial performance. These findings provide guidance for managers and organizational leaders in designing holistic strategies to achieve financial and operational success.

Keywords

Human Resource (HR) Competency Management Control Systems Leadership Trust Financial Performance

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Tita Rachtawati Santanu. (2022). Building Trust and Leadership: The Impact of Management Control Systems and Human Resource Competence on Financial Performance. Study at Perumda BPR Garut. Atestasi : Jurnal Ilmiah Akuntansi, 5(2), 844–860. https://doi.org/10.57178/atestasi.v5i2.911
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Angioni, S. A., Giansante, C., Ferri, N., Ballarin, L., Pampanin, D. M., Marin, M. G., Bargione, G., Vasapallo, C., Donato, F., Virgili, M., Petetta, A ., Lucchetti, A., Cabuga Jr, C. C., Masendo, C. B. ., Hernando, B. J. ., Joseph, C. C. ., Velasco, J. P. ., Angco, M. K. ., Ayaton, M. A., … Barile, N. B. (2021). Can an Internal Control System Improve the Quality of Financial Reports in Construction Services Companies? Fisheries Research, 140(1), 6. http://dspace.ucuenca.edu.ec/bitstream/123456789/35612/1/Trabajo de Titulacion.pdf%0Ahttps://educacion.gob.ec/wp-content/ uploads/downloads/2019/01/GUIA METHODOLOGICA EF.pdf%0Ahttp://dx.doi.org/10.1016/j.fishres.2013.04.005%0Ahttps://doi.org/10.1038/s41598-020-
  2. Anthony, R.N. and Govindarajan, V. 2007. Management Control System 12th, New York: McGraw- Hill
  3. Anwar, S. (2022). Analysis of Employee Satisfaction with Leadership. ACADEMIC: Economics & Business Student Journal, 3(3), 115–124. https://doi.org/10.37481/jmeb.v3i3.606
  4. Boxall, P., & Purcell, J. (2021). Human Resource Competence, Trust, and Financial Performance: An Integrated Model. Journal of Human Resource Management, 114-121.
  5. Cohen, E. L., & Prusak, J. T. (2021). Building Trust through Competent Human Resources: Organizational Insights. Organizational Behavior Journal, 312-319.
  6. Collins, N. M., & Clark, S. (2020). The Role of HR Competence in Enhancing Leadership Capabilities: A Study in the Public Sector. Public Administration Review, 55-63.
  7. Covey, S.M.R. (2006). The Speed of Trust. Free Press, New York, NY.
  8. Eisenhardt, K. M., & Martin, J. L. (2021). Enhancing Trust through Effective Management Control Systems. Management Science Journal, 221-228.
  9. Erdawati, L., & Mujamil, I. (2019). Analysis of Operational Risk Management at PT Bank Perkreditan Rakyat (Bpr) Indosurya Daya Sukses. Proceedings of the Multidisciplinary National Symposium (SinaMu), 1(7). https://doi.org/10.31000/sinamu.v1i0.2140
  10. Hambrick, D. C., & Finkelstein, S. (2019). Linking Management Control Systems with Leadership Styles. Strategic Management Journal, 103-110.
  11. House, R. J., & Hanges, P. J. (2018). Leadership and Financial Performance: Exploring the Connection. Leadership Quarterly, 89-95.
  12. Kaunang, T. L., Tinangon, J. J., & Tirayoh, V. Z. (2021). Analysis of Management Control System Implementation To Improve Company Performance At PT. State Electricity Company (Persero) South Manado Customer Service Unit. EMBA Journal, 9(1), 1146–1154.
  13. Kaplan, S., & Norton, D. (1996). The Role of Leadership in the Mediating Effect of Management Control Systems on Financial Performance. Harvard Business Review, 125-130.
  14. Kotter, J. (2020). Leadership as a Mediator in the Relationship between HR Competence and Financial Performance. Journal of Organizational Behavior, 95-101.
  15. Merchant, K. A., & Van der Stede, W. A. (2007). Management Control systems: performance measurement, evaluation and incentives. Pearson Education.
  16. Mintzberg, H., & Quinn, J. B. (2019). The Role of Leadership in Mediating the Effect of Management Control Systems on Financial Performance. Administrative Science Quarterly, 33-39
  17. Purwaningsih, E., & Zelina, R. (2022). STRENGTHENING THE CORPORATE MANAGEMENT CONTROL SYSTEM THROUGH GOOD GOVERNANCE. Accounting and Business Research Trilogy, 04(02), 95–106.
  18. Rakhmalina, I. (2021). The Influence of Competence, Motivation and Organizational Commitment on PT Employee Performance. Thamrin Brothers A. Rivai Palembang. Social, Journal of Science, 2(1), 14–34.
  19. Rusdian, S., & Rismayani, N. (2020). The Influence of Incentives on Employee Engagement (Study at CV. Astro Tarogong Garut). Business Economics, 26(2), 398–410. https://doi.org/10.33592/jeb.v26i2.1057
  20. Rusman. (2022). Human Resources Challenges in the Era of Globalization. Scientific Management, 1(2), 78–84.
  21. Shapiro, C. C., & Willig, L. G. (2020). Trust and Financial Performance: Mediating Effects of Organizational Culture. Journal of Business Ethics, 47-54.
  22. Sharma, A. K., & Bansal, P. P. (2019). Impact of Human Resource Competence on Financial Performance: Evidence from Banking Sector. International Journal of Business Management, 23-30.
  23. Sriwidodo, U., & Sugito, B. (2007). The Influence of Leadership, Trust and Job Satisfaction on Employee Performance. Journal of Human Resource Management, 2(1), 35–43.
  24. Suhartono. (2013). The Role of Rural Banks (BPR) in Increasing the Success of the MSME Sector. Sustainable Competitive Advantage (SCA), 2(1), 1–8.
  25. Ulrich, D.; Younger, J.; Brockbank, W.; Ulrich, M. 2012a. HR Talent and the New HR Competencies. The RBL White Paper Series, The RBL Group