An effective management of smaller wood enterprise is presented on a concrete example. Its current management was analysed in detail, obtaining planning, delegating and control. Suggestions were also made for some changes to improve these stages and consequently the effectiveness of the enterprise. Analysis of the state contained thorough examination and evaluation of working duties on all positions in the enterprise, especially the one including directorship, mostly performed by director himself. Suggestions for effective management of the enterprise mainly refer to improvements in production planning and motivating of workers. They also refer to changes in organisation structure and introduction of new leading employees. Using these measures operative and tactic management of the enterprise will be more effective and decentralised, while the strategic management will also be of better quality.