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Purpose. The purpose of this paper is to explore and explain the basic aspects of management in libraries, its functions, peculiarities and inter-relations as well as the role and contribution of professional library bodies to the process of management. The additional goal of the paper is to foster a better understanding of the connection between the functions of management with those of governing and execution. Design. The introductory part of the paper explores the fundamental management terms. It is followed by explanations of management functions such as planning, decision making, organizing, personnel recruitment, guidance, and control. This segment is followed by the explanations of the content of library management as well as the basic categories of management. The final part of the paper analyses the symbiosis (or complementarity) of business and management functions in a library as organisation/institution with the discussion about basic business activities. Findings. The paper facilitates better distinction between the function of management and those of management and execution. It also stresses the importance of improvement of the present management practices in Croatian libraries (as institutions of special social interest). Practical implications. The content of this paper can improve the management quality of library directors and other library administrative personnel increasing their level of knowledge and competences in the area of management as well as contributing to better understanding of their responsibility and competence. Social implications. The paper implies the improvement of good practice of management in libraries as institutions that incorporate in their activities important social areas and have significant influence on culture, education, science, information, and entertainment as well as indirect influence on economy, political system, democracy, etc. Originality/Value. The paper offers a productive connection of knowledge from two different scientific areas – organisation and management on the one, and librarianship on the other. It also offers an explanation of the management process in practice. [ABSTRACT FROM AUTHOR]