Management Concepts Every Manager Should Know (2024)

Management involves a complex interaction between individual people, collective organizations, and the goals they share. Putting it into practice are managers, who use a wide-range of management concepts to get things done with the resources available and the skills of their staff.

But, what concepts should you know to excel as a manager? And, what can do you to improve your managerial abilities?

In this article, you'll learn more about a wide range of different management concepts, the skills you'll need to be an effective manager, and what you can do to improve your managerial abilities. At the end, you'll explore flexible, online courses that can help you gain job relevant skills today.

The five functions of management

As an aspiring manager, you’ll need to know have a strong grasp of the five fundamental functions of management: planning, organizing, staffing, leading, and controlling your business processes. By understanding and using management competencies in these five management disciplines, you'll be better able to achieve your goals and set your team up for success. 

At a glance, here's what each of the five functions means:

• Planning is setting goals and creating a strategy to achieve those goals.

• Organizing is putting the plan into action by creating a structure and assigning tasks. 

• Staffing, recruiting, hiring, and training employees to carry out the plan. 

• Leading motivates and guides employees to achieve the organization's goals. 

• Controlling is monitoring progress toward the organization's goals and taking corrective action when necessary. 

What are management, administration, and leadership?

In each of the five management functions, situations may emerge where you need to focus more on management, administration, or leadership. Here is what each process looks like: 

• Management involves setting goals and then working with people to achieve them.

• Administration is the process of managing the details. This includes planning, organizing, and controlling resources.

• Leadership is the process of influencing people to accomplish desired objectives. This involves high-level strategy and motivating and guiding people to achieve results. 

You'll need to build your management, administrative, and leadership skills to develop a career as an effective manager. 

Read more: 11 Key Project Management Skills

What can you earn from management roles?

According to the US Bureau of Labor Statistics (BLS), management professionals earned an average annual salary of $102,450 as of May 2021 [1]. Your earnings will depend on factors like your experience, and the size, location, and sector of your company. 

Here are some management and board-level roles you might want to target in your career, along with the average annual base salary you can expect to earn as of July 2023, according to Glassdoor:

• General manager: $61,063

• Operations manager: $67,218

• Sales manager: $74,183

• Finance manager: $115,411

• Marketing manager: $74,519

• Product manager: $111,212

• Project manager: $89,089

• Program manager: $106,842

• Chief executive officer (CEO): $193,587

• Chief operating officer (COO): $200,246

• Chief technology officer (CTO): $195,064

• Chief financial officer (CFO): $196,195

Note: All salary data taken from Glassdoor as of July 2023.

Management skills to know in 2023

You’ll need a diverse skill set when managing people in an organizational setting. Here is a look at some of the core administrative, leadership, and management competencies essential in management jobs. 

1. Demonstrate honesty and transparency.

Your employees need to trust you, and they can only do that if they know that you’re being honest with them. When you’re open and transparent with your employees, they’ll also be more likely to feel comfortable coming to you with any concerns or problems they may have.

2. Inspire others.

Your employees will look to you for guidance and motivation, and it’s up to you to set the tone for the team. People need to see that you're passionate about your work and willing to work hard to make things happen. People who see you're committed and driven will be more likely to follow your lead. 

3. Communicate effectively.

You need to be able to communicate with your team, clients, and upper management. This means being able to communicate clearly and concisely, as well as being able to listen to their concerns and feedback. Effective communication is essential to building a solid rapport with your team and ensuring everyone aligns themselves with organizational goals.

4. Practice active listening.

Active listening involves taking the time to listen to what your employees are saying without interrupting or trying to offer solutions too quickly. By listening to them, you can gain valuable insights that’ll help you make better decisions about managing your team.

5. Resolve conflict.

A great manager knows how to diffuse a tense situation and come to a fair resolution for everyone involved. Understanding conflict resolution strategies can help prevent minor issues from becoming big problems.

6. Coach and mentor others.

By coaching and mentoring, you’ll be able to help staff reach their full potential and be more effective in their roles. When you create a learning culture, your teams become more adaptable and productive.

7. Delegate tasks.

Delegation allows you to focus on your work while ensuring that tasks progress efficiently. When you delegate, you can assign duties to team members with the skills and knowledge necessary to complete the task. This saves you time and allows you to use the strengths of those around you.

8. Use problem-solving skills.

You’ll be responsible for finding solutions to problems that may arise. You’ll need to be able to understand the nature of a problem and think creatively to overcome challenges.

9. Think strategically and make decisions.

Taking a strategic approach helps you see the big picture and understand how your decisions impact the company. Strategic thinkers can anticipate problems and develop solutions before they occur.

10. Master organization and project management.

As a manager, it’s essential to remain organized. You’ll keep track of deadlines, projects, and goals. It also means communicating this information to your team and keeping them on track. Project management skills are also critical. This includes planning and execution.

Read more: What Does a Product Manager Do? Define Product Strategy

11. Be flexible, adaptable, and embrace change management.

Business sectors, technologies, and team requirements may change constantly. You need to be able to adapt to them. By being flexible, you’ll be able to maintain a work environment conducive to productivity and growth. 

Read more: 9 Key Management Skills: How to Show Them on Your Resume

Develop people management skills.

You’ll ideally concentrate on developing specific people management skills. By focusing on specific competencies, you can build higher competency levels in each area compared to a general competency approach.  Enrolling in professional development courses is a great way to learn new management techniques and improve your existing skills. 

You might also want to find a mentor or business coach to guide you on competency gaps and how to refine them. Asking other managers for feedback or advice is another great way to learn more about yourself—and what you need to do to improve as a manager.

How to become an effective manager

To become a great manager, you must gain the appropriate education and experience. Your resume should demonstrate many of the skills mentioned previously. You can develop your resume through formal education, extra courses, and management experience.

1. Get your degree.

To get a job in management, you’ll typically need an associate degree in a relevant field, such as business management. However, many employers prefer candidates with a bachelor's or advanced degree, such as an MBA. You'll need less education to work your way up from junior roles. With higher levels of education, you can enter the job market at a more senior level.

2. Consider certification.

You may want to consider getting a management certification to boost your resume. Additionally, some employers may require certifications for certain positions. For example, you might need to be certified in cloud infrastructure to work in cloud technology management roles.

Here are some certifications that you might want to consider:

Project Management Professional (PMP®)

The Project Management Professional (PMP) certification is one of project management professionals' most respected and recognized credentials. The Project Management Institute (PMI) organizes the PMP certification, which validates your proficiency in managing people, processes, and business environments. 

To apply for PMP certification, you’ll need a four-year degree and 36 months of experience in project management. You can also use an associate degree, but you’ll need at least 60 months of project management experience.

Read more: How to Get a PMP Certification: An Overview

Certified ScrumMaster® (CSM)

The Certified ScrumMaster (CSM) certification shows that you have the knowledge and skills to lead a team implementing Agile development practices. This certification is ideal for those who want to work with projects that use Agile methodologies and processes.

To qualify for the CSM certification, you’ll need to take a 14-hour CSM course, online or in-person. Next, you’ll have to pass the CSM examination, getting at least 37 correct answers from the 50 questions.

Read more: 7 In-Demand Scrum Master Certifications

Certified Business Process Associate (CBPA®), professional or leader

The Certified Business Process Associate (CBPA) program helps professionals in business process management-related fields to build a solid foundation in business process improvement techniques. The Association of Business Process Management Professionals International (ABPMP®) issues this certification.

To earn the CBPA certification, you’ll need 1250 hours of hands-on experience in business process management if you don't have a relevant degree. Alternatively, you can take and pass a comprehensive assessment to receive this certification if you have a four-year college degree.

Certified Product Manager (AIPMM)

The Certified Product Manager (AIPMM) certification is an industry-recognized credential that shows you have what it takes to champion new products through their entire cycle. As a certified product manager, it’s your responsibility to ensure that you create and release products that deliver the best results. The Association of International Product Marketing & Management (AIPMM) offers this certification. 

To qualify for the exam, you’ll need to take the 280 Group Optimal Product Management and Product Marketing training. You can do this in-person or online. After paying the examination fee, you can choose a date for your test on the AIPMM platform, perform a test run on the platform to understand how it works and get access to tips that will help you pass the exam more easily. If you pass the exam, you’ll receive your certification in about seven days. 

Read more: 10 PMI Certifications to Level Up Your Project Management Career

3. Sharpen your managerial skills.

You need to sharpen your managerial skills to be successful in your management career. Here are some practical things you can do to enhance your management ability in every role. 

• Take courses to learn management basics so you'll have a good foundation. As well as taking classes on management concepts, theories, and approaches, look for courses that cover diverse management, leadership, and administrative competencies.

• Try to get as much experience as possible in leadership roles. Offer to work on projects, take responsibility, and supervise junior staff. This will help you develop your managerial style and learn what works for you in different situations. 

• Show your worth to those in charge. Demonstrate that you're capable of handling more responsibility and committed to doing whatever it takes to help the team succeed.

Read more: How to Become a Project Manager: 6 Steps

Get started

To excel as a manager, you need to keep your skills sharp through professional development. If you're looking to enter a management position or expand your skillset for a job you already hold, you might consider taking a flexible, cost-effective specialization or Professional Certificate on Coursera.

In the University of Illinois at Urbana-Champaign's Strategic Leadership and Management Specialization, you'll the fundamentals of effectively leading people, teams, and organizations and develop tools to analyze business situations.

In Google's Project Management Professional Certificate, meanwhile, you'll practice strategic communication, problem-solving, and stakeholder management through real-world scenarios.