Influence of Internal Control on the Improvement of Organizational Performance – The Case of McMillan Woods Mozambique, Ltd. (2022–2023)

Abstract

This study analyzes the influence of internal control on organizational performance, focusing on McMillan Woods Mozambique, Ltd., during 2022–2023. In an increasingly complex and competitive business environment, internal control plays a crucial role in improving operational efficiency, mitigating risk, and supporting decision-making. The study adopted a mixed-methods approach, combining quantitative and qualitative techniques through structured questionnaires administered to 9 employees from the administrative and accounting departments. The findings reveal that although awareness of internal control is satisfactory, the organization faces significant weaknesses in formalizing policies, defining procedures, and consistently implementing control mechanisms. The study identified limitations in organizational structure, human resource adequacy, the absence of motivation systems, and weaknesses in ethical culture. The study concludes that internal control directly affects organizational performance, and its effectiveness depends on integrating structure, processes, people, and organizational culture. The study recommends that the organization strengthen formal control systems, improve internal communication, implement motivation policies, and enhance continuous monitoring to improve efficiency and sustainability.