Research On The Power Of Leader And The Effectiveness Of Internal Control

With the full implementation of our internal control regulations, how to implement theinternal control regulations and effectively improve the effectiveness of internal control was anurgent and important research. There is no doubt that the person is a fundamental factor instrengthening the effectiveness of internal control. As a leader of the corporation, he or she hasmore power and higher status, this lead him or her to have more important impact on the effectiveoperation of internal control.Therefore, the article intended to analyze the impact between thepower of leader and the effectiveness of internal control.Both the power of leader and effectiveness of internal control were defined by literatureanalysis and logical deduction method, then establishing the theoretical model. By usingQuestionnaire, the Power of Leader Scale was designed on the basis of RLPI Scale, and accordingto the theory the paper designed Effectiveness of Internal Control Scale by own. Using factoranalysis, descriptive statistics, correlation analysis, multiple regression analysis and otherstatistical methods, the paper analyzed data about the power of the leader impacting on theeffectiveness of internal control, in order to provide a basis for improving the effectiveness ofinternal control by configuring leader’s power properly.The results support that: In addition to the Coercive power of the leader and the effectivenessof internal control was not a significant negative correlation, the leader’s Rewardpower,Legitimate power,Expert power,Referent power and internal control effectiveness wassignificantly positively related; leader using non-position power was more influential than usingposition power on the effectiveness of internal control. So we propose that the leader should givefull play to the non-position power on the basis of the position power, and should moderate useCoercive powers and make full use of Reward power, Legitimate power, Expert power, Referentpower in the construction and implementation of internal control process.