Profit decentralization is a special form of company decentralization nowadays widely used in many large companies. In such companies it is being used as a powerful means of increasing the level of business efficiency. For that purpose it should also be used with the Republic of Srpska Railways. Profit decentralization is implemented by changing organizational structure what consequently draws creation of the following business units: profit centres, strategic business units, cost centres, revenue centres and investment centres. Although the aforementioned business units are used in the procedure of profitable decentralization of large companies of the market economy, the Republic of Srpska Railways should not go for their wider application at the initial stage of its implementation. Currently there is no need or conditions for it. Some of these business units simply do not fit into the Republic of Srpska Railways, not only now but also in the near future. It is a case with strategic business units, investment centres and revenue centres. Opposed to the afore-mentioned business units, profit and cost centres can be formed in the Railways of the Republic of Srpska. The goal of this paper is to show that profit decentralization of the Republic of Srpska Railways can establish such system of internal organization which encourages competition between managers of profit centres and other centres. This way the entrepreneurship, responsibility for results, evaluation, rewarding results and total efficiency of the Republic of Srpska Railways are accomplished. Appropriate scientific methods shall be applied in their work: theoretical method, method of analysis and method of synthesis.

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