In the focus of the work is the analysis of management in higher education, ie. of the university as its main subject. The University, in line with the expectations that the total environment has, and the new challenges ahead, requires the application of a more or less modern business model. The university is found as well as higher education in general with tectonic changes that have occurred in modern society from the end of the last century to the present. The issue of efficiency and effectiveness of university management is emphasized, with emphasis on public universities. The trend is in decline of the transfer of budget funds to public universities and higher education, in general. In these new conditions, the university can no longer function as before, without a clear and efficient management model, which would have regard to a new reality. That is why the question is raised rightly in the professional public, which or what models of governance can respond to the new challenges and temptations facing the modern university? The answer lies in finding an optimal model that can differentiate the challenges and expectations that are placed before the modern university, and find a quality balans between them. Such a model should provide a perspective for the long term self sustainability of a modern university.