Every company seeks to achieve its objectives, regardless whether their objective is profit maximization or something else. A particularity of all public enterprises is that their main objective is to satisfy citizens’ needs and at the same time attempt to achieve revenues that considerably exceed expenses, so as to avoid using state budget funds or funds from the budget of local and regional self-government units to plug financial holes of public enterprises. One of the most important factors that affect business operations of public enterprises as a whole, is management. The objective of management is to achieve the best possible results using readily available resources. Management is the factor that is essential for determining the function of all elements in a company, throughout the planning phase all the way to implementation. A particularity of public enterprise management lies in the fact that these companies operate in a somewhat different business environment. This primarily refers to the position that a public enterprise occupies within oligopolistic or monopolistic markets, but also to state support and statutory regulations that govern business operations of public enterprises. Public enterprise management should focus on taking advantage of the special position that public enterprises occupy on the market and seek to satisfy public needs as effectively as possible, at the same time monitoring financial performance of company’s business. However, practice has shown that public enterprise management rarely fulfils these duties in a manner that would satisfy citizens and the state. The main reason for this situation is the impact that politics has on the appointment of and work performed by public enterprise managers, who, unless appointed through political lobbying, tend to lose autonomy in fulfilling their duties due to the pressure imposed by the party currently in power, which finally results in a serious decline in the quality of their work.