Management with production workers was researched in 2 wood firms. It was found out that elements of boss management were mainly practiced, based on control, punishment, coercion and intimidation. On a smaller scale the use of managers' approaches of governance was also observed. This state is according to the theory of choice the reason for less efficiency in governance and work execution. Therefore, a suitable model of production work governance was proposed. It was suggested to replace the Boss management, as an extreme form of governance, by the manager management, based on bounding habits. The transition to this model of leadership should be progressive and introduced by foreseen steps. We anticipate that in a relatively short time the application of modern management approaches could improve the existing situation of production. Positive effects could be seen in improving the quality and efficiency of firms, as well as improving relations among employees and their leaders.