Locus of Control and Job Status as Mediators of Employees’ Perception of Downsizing and Organizational Commitment in Selected Ministries and Parastatals in Nigeria

Abstract

The study assessed the mediating role of locus of control and job status on the relationship between employee’s perception of downsizing and their commitment to work in selected public sector establishments in Nigeria. The study employed descriptive survey design and a Multi- stage sampling technique was adopted. Purposive sampling technique was used to select six Federal Government establishments in Abuja and Lagos State. Using stratified random sampling, a total of 604 respondents comprising (58.9%) males and (41.1%) females were selected from these establishments. Data were collected through the administration of standardized psychological tests: General Perception of Downsizing (GPD), Locus of Control Scale (LCS), and Organizational Commitment Questionnaire (OCQ). Data collected were analyzed using appropriate descriptive and inferential statistics. The results showed a significant positive relationship between employee’s perception of downsizing and their work commitment (r = 0.17; p< 0.05). That is, employee’s perception of downsizing exercise influenced their commitment to work. The results also showed that employees’ perception of downsizing was significantly influenced by locus of control i.e. Locus of Control (r = 0.29; p<0.01). However, there was no significant relationship between downsizing and job status (r = -0.08; P>0.05). Furthermore, the results showed that locus of control significantly mediated the relationship between perception of downsizing and employees’ commitment to work (? = 0.40; t = 10.30; p<0.01), while the result reveals that job status did not significantly mediate the relationship between perception of downsizing and employees’ commitment to work (? = 0.02; t = 0.64; p>0.05).The study concluded that employees’ perception of downsizing related to their commitment to work, and this relationship was mediated by employees’ locus of control.

Key Words: Downsizing; Commitment; Locus of Control; Job Status