The organization in modern society has a goal to achieve business or other social goals with the inclusion of human labor. Numerous authors are trying to define the concept of organization and among their definitions and understanding of the organization there are important differences, so some think that the organization is science, orther arts, some belive that the organization is made up of people and their relationships, while others that the organization is establishing harmony between people and available resources in order to perform certain tasks or activities. An important aspect of any organization is management. Corporate governance involves a set of relationship between management, bord, shareholders and stakeholders´ enterprise, establishes a framework for setting goals and determining the resources to achieve these objectives and monitors the performance and efficiency of enterprises. The model of business management in the „Croatian State Forest Enterprise“ is based on four elements: improving corporate governance, improving organizational structure, improvement of work processes in terms of the importance of establishing key performance indicators, improvement of human resources management and improvement of the organizational culture of the company.