The Correlational Studies Between The Cognition Of Internal Control System And The Organizational Performance In China Railway SS Group

With the deepening of the market economy development and nationalsupervision, enterprises are facing with external influences and internal unstablefactors. On one hand we should pay special attention to the comprehensivemanagement, improve market competitiveness; on the other hand we must be familiarwith the state policies and regulations, avoid risks of illegality and violations. In thissituation, the government issues internal control policies, which certainly will infusethe enterprises with new energy. In this century, internal control theory perspectivebecomes more comprehensive, and cross-disciplinary research is increasing. Whetherfrom the perspective of audit, management, corporate governance, or through theintroduction of organizational behavior, dynamics, management science, biology, theachievements of internal control theory research are enriching. In contrast, due to alack of related data of the objective cause, the application research is relatively weakand internal control system (this article hereinafter referred to as "internal controlsystem") cognitive empirical research is few.The enterprise internal control basic norms makes clear definition to the target ofinternal control.First, the internal control must be in accordance with laws andregulations,and all the company’s acts must be legal. Secondly, for the property safety,enterprises must avoid financial loss.In addition to this, the protection of itsstakeholders’ interest shall be managed, especially for the interest of investors.Thefinancial report shall be completed. Then, the effectiveness of operation is possiblyaccomplished. Therefore, to set up an effective internal control system is beneficial tothe improvement of enterprise organization performance, and good cognizance to theinternal control system makes good effectiveness of internal control system, then the organization’s performance can be improved.If internal control is described as the immune function of corporations, thesystem of internal control is operation principles and work rules, and the cognizanceto internal control system is the receiving and processing to the operation principles.The better receiving and processing is achieved, the immune system is more effective,and the capability of defense to the internal and external risks of the company isstronger.The author, by analyzing the results of other researchers, based on China railwaySS group, tries to discuss the cognizance to the internal control system andorganization performance on the perspective of management system. This paper,according to the five elements in the design of the questionnaire of "internalcontrol-the overall architecture", issues random questionnaire to China railway SSgroup and its7subsidiary companies, and tries to figure out the cognizance of theemployees of China railway SS group to internal control system, and collectinformation, complete the relevant empirical analysis, and verify the relativenessbetween cognition and organizational performance. This paper is dedicated to proposeeffective suggestions to the existing problems and defects within China railway SSgroup, and serve the improvement of company’s performance and marketcompetency.To the research method, this paper comprehensively uses documentary research,questionnaire and model analysis method. Through the literature review, this paperfinds out problems, and prepare for questionnaire to design; through the questionnairesurvey feedback,the required data is accomplished; through the establishment of themodel for the collected data and statistical analysis, the research results can be furtherexpounded.The main conclusions of this paper are finalized as follows: first, the cognizanceto internal control system of China railway SS complies with its structure of the said system.Secondly, the five elements of cognizance to internal control are positivelyrelated to the organizational performance. This paper achieves its expectation thatwhen the cognizance to the internal control system is better, the effectiveness oforganization performance is better.