The aim of this final paper is to analyse leadership in management. In that context, the starting point is a general analysis of the function of leadership. Based on that, we realise that leadership represents a process where an individual influences a group of people with the aim of achieving a common goal. Leadership in management is observed as a process and in that sense, it represents a phenomenon that occurs in a specific context and is available to anyone; in other words, leadership is regarded as a skill that can be learned. Leadership in an administrative organisation is designed as a specific task connected with leading positions in administration. Analysis of leadership in management is followed by an analysis of state administration in the Republic of Croatia from the aspect of management and leadership. Although management is sometimes used synonymously with leadership, these two concepts are essentially different. Leadership has been referred to ever since the times of Aristotle, whereas management is a concept that first appeared at the turn of the previous century, with the appearance of industrial society. Management is a much broader concept which, in addition to leadership, also encompasses planning, communication, control, etc. Although management and leadership are both fundamental regulatory processes in any organisation, leadership represents an executive function of management, with management being superordinate to leadership. Leadership occurs in the context of a group and includes the influence of the leading individual exerted on the group subordinate to him/her with the aim of achieving a common goal. In the chapter “Leadership in Management”, emphasis is placed on personality traits required for being a successful leader and on leadership styles and methods. A separate chapter discusses the tasks of the leadership function holder. State Administration Office in VukovarSrijem County was used in the paper as a practical example.