Economy & Business, Volume 15, 2021

Abstract: Municipal enterprises are one of the most significant organizational structures, whose activities require constant efforts for higher employee engagement and creating an appropriate organizational structure to increase the efficiency of services offered and actions performed. The management staff of municipal enterprises should focus their efforts on the relations between employees and their behavior through selected behavior and behavioral models that will allow building mutual trust and achieving efficiency of social capital due to its high impact on employee engagement work processes and their motivation. Nowadays, municipal enterprises and their management are one of the most important social activities, and the improvement of their efficiency cannot be achieved without considering their role in society, the factors determining social engagement, as well as the involved participation of citizens as participants in the country's economy, affecting economic growth. This type of enterprise is also considered one of the main central bodies, as their organizational structure and goals set to achieve require specific motivation of workers to increase their commitment to the organization, build mutual trust and achieve organizational behavior that develops social capital and the transfer of knowledge. The purpose of the report is to analyze the importance of social capital for municipal enterprises by assessing the usefulness of social relationships between people, which benefits the establishment of different ways to develop local government, territories and their resources.