Abstract
The aim of this paper has two directions. The first one is our attempt to define new method and procedure for estimating surplus of employees in the public sector, as one of the tools for public sector control. The second direction is the analysis of the public sector at the local level in Serbia, where overstaffing in public utility companies, founded and owned by Local Self-Government Units in Serbia, was analyzed using specific methods. The conclusions have been made on the basis of the restructuring projects carried out in over 20 public utility companies, which included over 20,000 employees.
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