The Effects Of Internal Control System Of Personnel Records On The Organization's Performance A Case Study Of Kenya Ports Authoritymombasa, Kenya

ABSTRACT

The study was done at Kenya Ports Authority Headquarters located m Mombasa- Coastal region of Kenya. Due to the massive reduction on the performance of Kenya Ports Authority in the financial year 2008/2009, the researcher sought to investigate on the effects of managing personnel records on the performance. The objectives of managing personnel records included the following; to ensure that a complete and comprehensive employment history of each employee is readily available for as long as it is needed, and that the information contained in personnel records supports the management, deployment, payment and development of staff, and lastly to support transparency and organizational accountability and to enable accurate audits by creating and protecting human resource records as reliable evidence. It follows that the creation and control of personnel records are critical to the success of an organization's operations. The effective management of personnel records enables organizations to manage their employees efficiently and equitably, encourages informed and consistent decision making, supports transparency and accountability and facilitates the monitoring and evaluation of staff performance. However, the research revealed weaknesses on the payroll records of Kenya Ports Authority which have contributed to alleged existence of dummy employees. The anomalies found included the following; Employee appears twice on payroll with same PIN, Employee appears twice on payroll with different PIN, variation in name between payroll record and personnel file, two different employees with the same PIN, among others. In order to manage personnel records effectively and efficiently, the organization is advised to adopt the standardized file covers, establish numbering system, storing personnel files and managing Authorization aspect.