Study On Internal Control Evaluation Of Knowledge-based Organization In View Of Behavior-based Value Management

In knowledge economy era, the importance of people is increasinglyhighlighted, especially for the knowledge-based organization. However, thetraditional internal control evaluation methods based on internal control elements orinternal control framework don’t pay enough attention to the people and theirbehavior, which results organization internal control evaluation practice in variouspredicaments, at the same time, affects the role of internal control of the organizationand also reduces the efficiency of organization value creation. Therefore, it’s a hightime to explore the new view or idea of internal control evaluation according to theactual and it’s deserved both in theory and practice.In the knowledge-based organization, knowledge is the main source ofcompetitive advantages, and people are the basic support of the organization valuecreation. Knowledge economy is inseparable with people. If the knowledge-basedorganization wants to get sustainable development power, all its managementactivities should embody humanistic concept, and internal control system as one ofthe inside management activities is no exception. In view of this, the article proposesto bring the concept of behavior-based value management into the study of internalcontrol evaluation and pays more attention to the people when evaluating theeffectiveness of internal control. Internal control evaluation based on the view ofbehavior-based value management pays more attention to control those responsiblepeople and their behaviors, and focuses on how internal control behavior processinfluences the value of organization.Firstly, on the basis of relevant theories, the article explores the feasibility ofthe application of behavior-based value management theory in the knowledge-basedorganization internal control evaluation. And then, the article discusses thecharacteristics of the knowledge-based organization internal control from theperspective of the principle of the construction of internal control and the microdeconstruction of internal control, and further the characteristics of theknowledge-based organization internal control evaluation are discussed in the paper.On the basis, the article builds the internal control evaluation logic framework suitedfor knowledge-based organization based on the view of behavior-based valuemanagement, and further discusses the content elements including the evaluationtarget, evaluation subject, evaluation content, evaluation standards, evaluation index,evaluation procedures and methods, and evaluation report. The paper argues that theknowledge-based organization should combine the internal control goal with itsstrategic target, and gradually refine to each behavior business unit, and target the internal control evaluation at continuous optimization of the internal control behavior.At the same time, the internal control evaluation should not only focus on thevalue-added internal control behavior, but also the behavior which doesn’t appreciateor depreciates value of the organization in a reasonable guarantee under the premiseof organization goals. The internal control evaluation of knowledge-basedorganization should be based on the business system, and pay more attention to thepeople and their internal control behavior process, and should design the internalcontrol evaluation index system from the behavior results and behavior process.Among them, the behavior process indicators should be based on the divided behaviorbusiness units, and be designed from three aspects: organization, team and individual.The evaluation method can refer to guiding meeting method of CSA to achieve “totalevaluation”. The evaluation procedure should reflect the dynamic control andcontinuous improvement. It’s not only a process of “blame” but also a dynamicprocess of continuous improvement. Finally, the paper applies the designed evaluationsystem to ZXHY Management&Consulting Firm, and further refines the specificevaluation standards and evaluation index to fit the company’ operation andmanagement characteristics.The knowledge economy era is an era of competition and opportunities in therapidly changing, and is also an era of people’ value growing with time. Only theinternal control theory in accordance with the age character and organizationalcharacteristics can better guide the internal control evaluation practice. The normativeresearch method and case study research method are combined in the paper, and theintention of this paper is to apply the view of behavior-based value management tointernal control evaluation and to explore the internal control evaluation system morein line with times characteristics and organizational characteristics.