The Impact of Organizational Structure on Organizational Commitment: A Comparison between Public and Private Sector Firms in Jordan

Abstract

This study aims to examine the impact of organizational structure on organizational commitment in public and private sectors firms in Jordan. Three main structural dimensions are included in this research: formalization, centralization (in the form of hierarchy of authority and participation), and standardization. 412 surveys were administrated to 23 public and private firms in Amman and a sample of 239 valid questionnaires were obtained. Results reveal that all structure dimensions are related to organizational commitment in both sectors, except the hierarchy of authority. Among the structure dimensions, formalization exhibits the largest correlation with organizational commitment in public firms, whereas participation has the largest correlation with organizational commitment in private firms. Employee demographic has no impact on either structure dimensions or organizational commitment in either private or public sector. Furthermore, position in either private or public sector does not moderate the relationship between organizational structure and organizational commitment.

Keywords: organizational structure, formalization, centralization, hierarchy of authority, participation, standardization, organizational commitment, Jordan.