The effects of enabling and coercive controls on employee performance and job satisfaction

Abstract

This study explores the impact of enabling and coercive control systems on employee performance and job satisfaction in a global asset management and disposition company that follows SOX regulations. Using Libby boxes, the hypotheses of the study are presented. The research adopts a quantitative research method. Data is collected from 52 employees from the accounting and financial departments via a questionnaire. Using SPSS, data is converted into useful information. The study's findings reveal that employees perceive enabling and coercive controls differently. Moreover, even though publicly traded companies comply with SOX and are expected to have a high level of control tightness, there are enabling control characteristics in the company of the study besides the coercive ones leading us to the conclusion that enabling and coercive controls are not mutually exclusive approaches, in contrast, they are two sides of the same coin. Finally, this thesis finds a positive and significant relationship between enabling and coercive controls and employee performance and job satisfaction. The results can be used to construct a work environment that maintains high levels of job satisfaction to prevent constant mobility of the skilled workforce and drives workers towards exceptional performance at the workplace.