Implement a good internal control system

Oct 13, 2025 by talynt.org 11 views

The Effect of Internal Control Systems, Compliance, Management Compensation, Work Motivation, and Provision of Additional Conditional Income (TPB) on Employee Ethical Behavior: A Case Study at the Secretariat of the Binjai City DPRD

Introduction

In today's fast-paced and competitive business environment, organizations are constantly seeking ways to improve employee ethical behavior and maintain a positive work culture. One of the key factors that contribute to employee ethical behavior is the presence of a good internal control system, compliance, management compensation, work motivation, and provision of additional conditional income (TPB). This study aims to analyze the effect of these variables on employee ethical behavior in the Secretariat of the Binjai City DPRD.

Background

The Secretariat of the Binjai City DPRD is a government institution responsible for providing administrative support to the city's legislative body. As a public institution, it is expected to maintain high standards of ethics and integrity in its operations. However, like many other government institutions, the Secretariat faces challenges in maintaining a positive work culture and promoting employee ethical behavior. This study seeks to identify the factors that contribute to employee ethical behavior in the Secretariat and provide recommendations for improving it.

Research Methodology

This study used a correlational approach carried out by multiple linear regression analysis. A questionnaire-based survey method was used to collect data from 33 employees selected from a total of 65 employees at the Secretariat. The questionnaire was tested for validity and reliability before being administered to the participants. The data was processed using SPSS software version 26, and a classic assumption test was carried out to ensure the validity of the data obtained.

Main Findings

The results of the analysis show that the internal control system and the provision of additional conditional income have a positive and significant influence on employee ethical behavior. This means that when a good internal control system is applied and employees receive additional income, they tend to show more ethical behavior in carrying out their duties. On the other hand, compliance and management compensation have a positive but not significant effect. This can be interpreted that although there is a positive influence, these factors are not strong enough to significantly influence employee ethical behavior.

Simultaneous Impact

Simultaneously, the results of the study also showed that all independent variables - internal control systems, compliance, management compensation, work motivation, and providing additional conditional income - have a significant influence on employee ethical behavior. This confirms the importance of integration of all these aspects in creating a work environment that supports ethical behavior.

Deeper Analysis

A good internal control system creates transparency and accountability, which in turn can reduce the possibility of unethical actions. The existence of strict supervision also provides encouragement for employees to be more obedient and behave ethically. In addition, additional conditional income can provide stronger motivation for employees to behave well, because they feel valued for their performance and integrity.

The importance of compliance and management compensation cannot be ignored, although the impact is not significant in this study. Both play a role in creating an ethical-oriented organizational culture, where employees are encouraged to not only comply with the rules, but also to internalize the values of ethics in their work. Work motivation is an equally important factor, because motivated employees tend to be more committed to their duties and responsibilities.

Conclusion

Overall, this research emphasizes the importance of a good internal control system, compliance, and management of compensation and motivation in encouraging the ethical behavior of employees in the Secretariat of the Binjai City DPRD. To improve employee ethical behavior, the organization should pay attention to all these elements simultaneously in order to create a positive and productive work environment. This study provides valuable insights for decision makers in order to increase integrity and ethics in the government's work environment.

Recommendations

Based on the findings of this study, the following recommendations are made:

Implement a good internal control system: The Secretariat should implement a good internal control system that creates transparency and accountability, and provides strict supervision to encourage employees to behave ethically.
Provide additional conditional income: The Secretariat should provide additional conditional income to employees to motivate them to behave well and feel valued for their performance and integrity.
Improve compliance and management compensation: The Secretariat should improve compliance and management compensation to create an ethical-oriented organizational culture, where employees are encouraged to not only comply with the rules, but also to internalize the values of ethics in their work.
Enhance work motivation: The Secretariat should enhance work motivation by providing opportunities for employees to develop their skills and abilities, and by recognizing and rewarding their contributions to the organization.

By implementing these recommendations, the Secretariat of the Binjai City DPRD can improve employee ethical behavior and maintain a positive work culture.
Frequently Asked Questions (FAQs) about the Effect of Internal Control Systems, Compliance, Management Compensation, Work Motivation, and Provision of Additional Conditional Income (TPB) on Employee Ethical Behavior

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the effect of internal control systems, compliance, management compensation, work motivation, and provision of additional conditional income (TPB) on employee ethical behavior in the Secretariat of the Binjai City DPRD.

Q: What is the significance of this study?

A: This study is significant because it provides valuable insights into the factors that contribute to employee ethical behavior in a government institution. The findings of this study can be used to improve employee ethical behavior and maintain a positive work culture in the Secretariat of the Binjai City DPRD.

Q: What is the methodology used in this study?

A: This study used a correlational approach carried out by multiple linear regression analysis. A questionnaire-based survey method was used to collect data from 33 employees selected from a total of 65 employees at the Secretariat.

Q: What are the main findings of this study?

A: The main findings of this study are that the internal control system and the provision of additional conditional income have a positive and significant influence on employee ethical behavior. Compliance and management compensation have a positive but not significant effect.

Q: What are the implications of this study?

A: The implications of this study are that a good internal control system, compliance, and management of compensation and motivation are essential in creating a work environment that supports ethical behavior. The provision of additional conditional income can also provide stronger motivation for employees to behave well.

Q: What are the recommendations of this study?

A: The recommendations of this study are that the Secretariat should implement a good internal control system, provide additional conditional income, improve compliance and management compensation, and enhance work motivation to improve employee ethical behavior.

Q: How can this study be applied in other organizations?

A: The findings of this study can be applied in other organizations by implementing a good internal control system, providing additional conditional income, improving compliance and management compensation, and enhancing work motivation to improve employee ethical behavior.

Q: What are the limitations of this study?

A: The limitations of this study are that it was conducted in a single organization, and the sample size was relatively small. Future studies should be conducted in multiple organizations and with larger sample sizes to generalize the findings.

Q: What are the future research directions?

A: Future research directions include conducting studies in multiple organizations, with larger sample sizes, and using different methodologies to generalize the findings. Additionally, studies can be conducted to explore the impact of other factors on employee ethical behavior.

Q: What are the practical implications of this study?

A: The practical implications of this study are that organizations can improve employee ethical behavior by implementing a good internal control system, providing additional conditional income, improving compliance and management compensation, and enhancing work motivation. This can lead to improved organizational performance and reputation.