The panchayat raj system is very powerful machinery and play vital role on the development of rural areas. The study has covered the specified area where the respondents are active in local decentralized administration. The local election process, participative decision making by the local leaders and the functional activities of the panchayat raj management system on the various developmental activities have been studied extensively. The structured questionnaire was administered on the local citizens to elicit the responses. The study has resulted in though there is positive response but still there is need to improve. The panchayat raj system should be equipped with the trained and qualified manpower, optimum utilization of resources, act transparently, proper allocation of funds on various developmental activities etc. Any system of activity to be successful, it has to be managed systematically; otherwise the performance will not be as expected.

KEYWORDS: Panchayat Raj, Management System, Local Leaders, Decision Making, Performance.