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As a player, Pavić defended the colours of Red Star Belgrade. After his active career he became a head coach with the same team, winning the national championship three times (1958–59, 1959–60, 1963–64) and winning three Yugoslav Cups (1958, 1959, 1964). For seven seasons between 1957 and 1964, he led the team from the bench in 216 official competitive matches (113 wins, 52 draws, and 51 losses).
He also coached Belgian teams Club Brugge (1967–1969), Standard Liège (1964–1967, 1985–1986, 1987–1988), Portuguese teams Benfica (1974–1975) and Sporting CP (1978–1979), and Spanish teams Athletic Bilbao (1972–1974), CD Málaga (1975–1977) and Celta de Vigo (1980–1983). Outside Yugoslavia he was known by nickname "Michel". The press also described him as a Gentleman in Iron Gloves.
In his youth Pavić was taken hostage by the Germans in World War II.
Pavić also won two Belgian Cups as a coach with Standard Liege (1966, 1967), a Spanish Copa del Rey with Athletic Bilbao (1973), and a Portuguese league with Benfica in 1974–75.
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Pavić in 1975 as Benfica coach