Structural Equation Modeling of the Factors Influencing Collective Decision-Making and Its Impact on Personal Development

Document Type : Research Paper

Author

Assistant Prof., Department of Management, Faculty of Management, Economics, and Progress Engineering, University of Science & Technology (IUST), Tehran, Iran.

10.22059/jipa.2026.406205.3828

Abstract

Objective
In today’s dynamic and highly competitive business environment, organizations increasingly acknowledge that sustainable success depends not only on financial or technological resources but also on the continuous development of human capital. Although personal development is widely recognized as a critical factor in enhancing employee effectiveness and organizational performance, formal training and development programs often require substantial financial investment and time commitment, and they do not always result in enduring behavioral or cognitive change. As a result, identifying low-cost, participatory, and sustainable mechanisms that foster employee development has become a significant managerial concern. One such mechanism is collective decision-making. Participation in decision-making processes allows employees to engage in cognitive exchange, reflective dialogue, and collaborative problem-solving, which may contribute to both individual growth and organizational learning. However, the effectiveness of collective decision-making largely depends on the presence of common rationality—a shared logical and cognitive framework that enables mutual understanding, coordinated thinking, and reasoned interaction among organizational members. Despite the conceptual relevance of these constructs, limited empirical research has examined their interrelationships within organizational settings. Accordingly, the primary purpose of this study is to examine the structural relationships among common rationality, collective decision-making, and personal development in organizations. Specifically, the study investigates whether collective decision-making plays a mediating role in the relationship between common rationality and personal development.
Methods
This study is applied in nature and adopts a descriptive–correlational research design. The research model was tested using structural equation modeling based on the partial least squares approach (PLS-SEM). This method was selected due to the exploratory–explanatory nature of the model, the presence of a mediating variable, the emphasis on prediction and explanation of relationships among constructs, and the absence of strict assumptions regarding data normality. The statistical population consisted of employees working in service and manufacturing organizations in Tehran. A stratified random sampling method was employed to ensure adequate representation of different organizational sectors. Data were collected using a standard questionnaire measured on a five-point Likert scale. The validity and reliability of the measurement instrument were assessed and confirmed through confirmatory factor analysis, Cronbach’s alpha coefficients, and composite reliability indices. Data analysis was conducted using SmartPLS 4 software.
Results
The results of the structural model analysis indicated that common rationality has a positive and statistically significant effect on collective decision-making (β = 0.61, p < 0.001). In addition, collective decision-making was found to have a positive and significant influence on personal development (β = 0.57, p < 0.001). The mediation analysis further revealed that collective decision-making partially mediates the relationship between common rationality and personal development, suggesting that a portion of the influence of common rationality on personal development operates through participatory decision-making processes. The overall Goodness of Fit (GOF) index of the model was calculated as 0.540, indicating a satisfactory level of model fit and supporting the robustness and predictive validity of the proposed structural framework.
Conclusion
The findings of this study demonstrate that collective decision-making functions not only as a managerial mechanism for improving the quality and acceptance of organizational decisions but also as an effective pathway for fostering employees’ personal development. Active participation in decision-making processes encourages mutual learning, critical reflection, and the exchange of perspectives, which in turn enhance self-awareness, cognitive flexibility, and interpersonal competencies. These results suggest that personal development can emerge organically through social and cognitive interaction rather than relying exclusively on formal training programs. From a theoretical perspective, this study contributes to the literature by integrating common rationality, collective decision-making, and personal development into a unified framework, thereby bridging cognitive and behavioral approaches in human resource development research. From a practical standpoint, the findings underscore the importance of moving beyond hierarchical, top-down decision-making models and cultivating a participatory organizational culture. Such an approach not only strengthens organizational learning and employee commitment but also enriches human capital through shared cognitive growth. Future research is encouraged to expand the model by examining additional mediating or moderating variables, such as organizational trust, mindfulness, collective learning, and participatory culture, and by testing the framework across diverse industries and organizational contexts.

Keywords

Main Subjects

References

 
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Journal of Public Administration
Volume 18, Issue 2
2026
Pages 521-548

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