The aim of this study is to present the problems of public management, with particular emphasis on local government.
For many years there has been a discussion underway on the effectiveness of management in the entities that are outside of the market in the traditional sense. These entities do not fulfil the objectives pursued by businesses operating in a market economy, after all, they do not maximize profit, or increase the value of the company, they do not pay dividends to shareholders and, in many cases, are not subject to the rules of the market.
However, public sector units fulfil the objectives defined as maximising the degree of meeting the needs of local communities and they have the resources to achieve these objectives. The problem lies in the fact that resources are limited and therefore it is necessary to make economic choices by answering the fundamental question: how to use the limited resources to maximise operations in the form of meeting the needs at the highest possible level. Answering this question requires effective management of managerial nature.
Keywords: public management, market economy, resources