Impact of Locus of Control (LOC) and Organizational Commitment on Employee Performance- Study of Service Sector, Pakistan

Area of this research focuses on the impact of internal and external locus of control (LOC) and organizational commitment on employee performance with focus on service industry of Pakistan i:e Careem (transportation network company) and to identify correlation; Pearson correlation was used which highlights the affirmative or favorable correlation between LOC and organizational commitment on employee performance who are employed in Careem Pakistan. To understand the influence of LOC and organizational commitment over employee performance inferential study was conducted in the form of survey. Closed ended questionnaire were filled by the respondents based on Likert scale and Instruction are written in the questionnaire for the respondent to read it and then fill the form with the ease. The respondents of the research belong to managerial position at top level, middle and lower level managers in Careem- a transportation service industry of Pakistan. Total 50 questionnaires were distributed among Careem employees from Hyderabad and 40 questionnaires were correctly attempted and returned that means response rate of survey was 80%. Finding of this research reveals that strength of correlation between Locus of control and employee performance in medium and doesn’t show enough evidence, whereas employee organizational commitment and employee performance shows strong correlation and reveal evidence of correlation. Employee who possess internal locus of control, belief that organizational commitment is necessary for employee performance whereas, employees who possess external locus of control belief that organizational commitment does not play major role in employee performance. Therefore, it is major responsibility of the manger to help their employees in understanding and shaping their locus of control because locus of control can be altered with proper training and effective communication.