CONFIRMATORY FACTOR ANALYSIS OF ORGANIZATIONAL EFFICINECY IN PUBLIC SECTOR: STRUCTURAL EQUATION MODEL FOR FIVE LOCAL GOVERNMENTS IN REPUBLIC OF SRPSKA

In this paper idea is to use the Structure Equation Model approach model organizational structure of local governments. The hypothesis that a complex hierarchical can be used for improving efficiency in public sector. final with satisfactory parameters showed possible. Process assumed identification an optimal set questions as directly measured variables. Latent variables are indirectly by certain iterative filters variable and setting relations between latent organized two levels. Certain seating according relevant literature. This confirmed applied structural equation further confirmatory factor analysis. Measured determined questioner extract those factors, where factors have been analyzed. Fact cohesiveness has highest loading 0.881, gives conditional conclusion group management whole, key factor.