ANALYSIS OF EFFICIENCY AND EFFECTIVENESS IN THE MANAGEMENT OF LOCAL SELF-GOVERNMENT UNITS IN BOSNIA AND HERZEGOVINA

Abstract

The application of modern management concepts has become an organizational priority in the private and public sectors. The dynamic development of the socio-economic system has led to the creation of various reform programs and models, especially for developing countries. Bosnia and Herzegovina, with complex constitutional system and political instability, in the transition process faces a slow implementation of public administration reform. Public administration reform is one of the key preconditions for Bosnia and Herzegovina’s entry into the European Union. Considering the complex organizational structure of public administration in Bosnia and Herzegovina, the efficiency and effectiveness of work and functioning are potentially a modality for improving the methods of work of the public administration bodies, as confirmed by the European Commission’s Progress Report on Bosnia and Herzegovina and the World Bank Report on Business Ease for 2017. The issue of efficiency and effectiveness is particularly important for managing the processes in smaller local government units, which are faced with the lack of specialized staff and financial resources.

The purpose of this research is theoretical analysis and empirical insight into the application of modern management concepts (New Public Management model) to improve efficiency and effectiveness in local self-government units, researching the impact and consequences on business performance as well as on local economic development.