The subject of the final paper is the “Specifics of Management in the Public Sector“. The concept of management as a process and its role has been defined in the first part of the paper. Management should involve highly educated staff, professional and qualified for the jobs they perform. The concept of public sector has also been defined and its structure presented throughout this paper, special emphasis is placed on the Croatian public sector. The efficiency of a particular state is reflected through the efficiency of its public sector, while several factors determine the efficiency of a public sector, with quality and competent management definitely being among the most important ones. The concept of new public management as a theory of management applied in some countries over the last thirty years is also discussed in this paper. The new public management has emerged as a response to the traditional approach to management, which struggled and was unsuccessful in coping with the challenges of globalisation and the progress of society.