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Decision-Making Processes Between Contextual Factors And The Structural Dimensions Of The Organization: Structural Equations Modeling Analysis

Author

Listed:
  • Mokhtar Rabhi

    (Ziane Achour University of Djelfa, Algeria, Business Faculty)

  • Rima Affaf Harizi

    (Ziane Achour University of Djelfa, Algeria, Business Faculty)

  • Mohammed Said Djoual

    (Ziane Achour University of Djelfa, Algeria, Business Faculty)

  • Ahlam Thamri

    (Ziane Achour University of Djelfa, Algeria, Business Faculty)

Abstract

This study aims to identify the contextual dimensions of the organizational structure represented in size, technology, strategy, culture, and the environment in the decision-making process. As well as to test the relationship between the organizational structure with its dimensions: formalization, centralization, complexity, specialization, and the decision-making processes with its dimensions: identifying and diagnosing the problem, developing work paths, and decision-making. A scale was designed to collect data from the study sample of 89 specialized economic organization administrative employees. The results of the study show the existence of a statistically significant effect of administrative complexity on decision-making processes. Also, there are statistically significant differences among the studied sample members due to the following variables: educational level, career level, and job experience. Furthermore, looking at the individual differences of decision makers as a significant factor explains the variation in performance. The study concludes with a set of recommendations; the main ones are the necessity of harmonizing the dimensions of the organizational structure and looking at them as strategic variables that contribute to directing the organization towards the planned paths through a set of decisions

Suggested Citation

  • Mokhtar Rabhi & Rima Affaf Harizi & Mohammed Said Djoual & Ahlam Thamri, 2023. "Decision-Making Processes Between Contextual Factors And The Structural Dimensions Of The Organization: Structural Equations Modeling Analysis," Economics and Management, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 20(1), pages 43-67.
  • Handle: RePEc:neo:journl:v:20:y:2023:i:1:p:43-67
    DOI: 10.37708/em.swu.v20i1.4
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    More about this item

    Keywords

    organizational structure; structural dimensions; contextual dimensions; decision-making;
    All these keywords.

    JEL classification:

    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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