MIDDLE MANAGEMENT INVOLVEMENT IN THE PROCESS OF STRATEGIC DECISION MAKING IN MIDDLE ENTERPRISES IN FEDERATION OF BOSNIA AND HERZEGOVINA

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Nedim Čelebić, PhD
Aziz Šunje, PhD
Dženan Kulović, PhD
Ermin Cero, MA

Abstract

Strategic decisions are of crucial importance for any company since they determine
direction of its development and growth. Strategic decisions determine the
direction of the company and are made by high-ranking managers in the organization.
From the point of view of the importance and complexity, these decisions
are crucial for the success of the organization. Although strategic decisions
are generally associated with top management, middle management plays
serious role in some phases of strategic decision making. Therefore, adequate
cooperation between the middle and top management in strategic decision-
making process becomes very important in order to make the right decisions
Purpose of this paper is to test theoretical model of strategic decision making which defines
and involves middle management roles in the process of decision making in emerging
markets such as Federation of Bosnia and Herzegovina. The goal is to research
in which extent middle managers participate in different phases of strategic decision
making. We used ‘’management science’’ method of decision making which has seven
phases among which three are considered as strategic role of middle management.
Those phases are implementation of decisions, synthesizing information from environment
and adoption of alternatives for decision making. For the purpose of empirical
model testing, we surveyed 135 middle and top managers from 30 middle
enterprises in Federation of Bosnia and Herzegovina. Correlation and regression
are used as statistical methods. Based on the model, research revealed that middle
managers only participate in phases of defining the problem, implementation of decisions and analysis of results while other four phases are generally associated with
top management. Analysis of results confirmed that characteristics of middle managers
do not correlate with the degree of their involvement in the process of decision
making.

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