INTRODUCTION ; Chapter I. PROCESS IMPROVEMENT IN THE LOCAL GOVERNMENT UNITS – THEORETICAL AND METHODOLOGICAL ASPECTS: 1. Directions of knowledge development in the area of public management ; 2. Institutional analysis – idea and elements ; 3. Methodology for identifying public management excellence in territorial self-government units based on the institutional analysis concept ; Chapter II. PLANNING AND CONTROL AS MANAGEMENT FUNCTIONS SUP- PORTING COMMUNITIES’ ECONOMIC DEVELOPMENT: 1. Improvement of strategie planning oriented on commune development ; 2. Strategie and financial management ; 3. Stimulating economic development ; Chapter III. ORGANIZING AS A FUNCTION TO STREAMLINE ADMINISTRATIVE ACTION: 1. Improvement of the organization of the municipal office – process approach ; 2. Organization and functioning of the office ; 3. Project management ; Chapter IV. SELECTION OF EMPLOYEES THROUGH EXCELLENCE IN THE EMPLOYMENT PROCESS AND ETHICAL PRACTICES: 1. Introduction ; 2. Human resources management ; 3. Ethics and prevention of corruption ; Chapter V. IMPROVING STANDARDS OF PROVIDED SERVICES – INSTITUTIO- NAL CHALLENGE: 1. Introduction ; 2. Directions for improving public service standards ; 3. Public services, including communal services ; Chapter VI. CONDITIONS OF EXCELLENCE COOPERATION AND COLLABORA- TION UNITS OF TERRITORIAL SELF-GOVERNMENT: 1. Introduction ; 2. Social participation and stimulation of development ; 3. Collaboration between units of territorial self-government ; CONCLUSION ; BIBLIOGRAPHY ; Annex (Appendix 1) IDENTIFICATION OF THE LEVEL OF GOVERNANCE EXCELLENCE IN THE UNIT OF LOCAL GOVERNMENT – DIAGNOSTIC QUES- TIONNAIRE.