Internal Control Measures and Cost Reduction in Housekeeping Departments of 3-5 Star Hotels in Nairobi City County Kenya
Loading...
Date
2021
Authors
Khasebe, Martin Butita
Maranga, Vincent
Gesage, Bichage M.
Journal Title
Journal ISSN
Volume Title
Publisher
Stratford Peer Reviewed Journals and Book Publishing
Abstract
Internal control system is one of the fundamental issues from a global perspective. The
growth of the global economy and many small and medium sized enterprises that are
coming up in this century has led to the challenges in the management of resources and
hence the need for the internal control systems. Internal control measures are generated to
ensure that the assets and resources of the organization are safe guarded. They also assist
in detecting against possible frauds that might occur in the organization. Various cost
reduction mechanism have been adopted by many hotels in the various departments.
However, many hotels have had difficulties in controlling costs which in the long run has
always escalated the cost of expenses. Additionally, limited studies have been done on cost
reduction measures in the housekeeping department of hotels.The study therefore sought
to find out the internal control mechanisms adopted and their influence on costs in the
housekeeping department on the various hotels that formed part of the study.The specific
objectives for the study were to establish the types of internal control measures instituted
in hotels that formed part of the study, to determine whether an internal monitoring and
review system that can detect internal control weakness existed in the hotels that formed
part of the study and lastly to determine whether the hotels in Nairobi often conduct risk
assessment processes to avert any problems of internal control. The study was conducted
in Nairobi County whereby the hotels that formed part of the study were selected through
a census from the population. The study adopted descriptive survey design with both
quantitative and qualitative research approaches for data collection and analysis.
Quantitative data was analyzed using both descriptive and inferential analysis. The
target population was 1380 middle and senior level staff in all the forty-eight (48) classified
hotels comprising of 3-5-star hotels in Nairobi County.This population yielded a sample
size of 300 respondents. Questionnaires and interview schedules were used to collect data. Validity and reliability of the research instruments was tested by conducting a pre- test
of the study before embarking on the actual study. The quantitative data was regressed
linearly to ascertain the relationship among the variables. Qualitative data was
triangulated and analyzed based on the findings. The results revealed that there was a
relationship between control environment and cost reduction was positive and statistically
significant (r=.595, p<0.05). The relationship between control activities and cost reduction
was positive and significant (r= 0.699, p<0.05), the relationship between monitoring
system and cost reduction was positive and significant. (r= 0.690, p<0.05). There was a
positive and significant correlation between Risk assessment and cost reduction (r =.679,
p<0.05). The regression of the variables generated the R square value of 0.853 (R2 = 0.853)
which indicated that the predictor variables explained 85.3% of the outcome variable a
significant relationship among the variables. The study concluded there is a correlation
between internal control measures and cost control yielding a strong positive relationship
between the above mentioned variables. The study recommended that hotels in Nairobi
County should endeavor to build capacity in getting good internal control measures to
ensure that their cost reduction is not compromised.
Description
An Article Published in Stratford Peer Reviewed Journals and Book Publishing
Keywords
Housekeeping control environment, Housekeeping control activities, Housekeeping monitoring system, Housekeeping risk assessment, Internal control measures, Cost reduction, 3-5 star hotels, Nairobi City County, Kenya
Citation
Khasebe, M., B, Maranga, V., & Gesage, B., M. (2021). Internal Control Measures and Cost Reduction in Housekeeping Departments of 3-5 Star Hotels in Nairobi City County Kenya. Journal of Hospitality and Tourism Management, 4(1), 72-94