Management Concepts Every Manager Should Know (2026)

Key takeaways

• Management concepts center on five core functions managers use to set goals and lead teams: planning, organizing, staffing, leading, and controlling.

• Management professionals earn an average annual salary of $122,090, according to the US Bureau of Labor Statistics (BLS), though pay varies by role [1].

• Building a management career typically means earning a relevant degree, pursuing certifications such as the PMP or CSM, and sharpening skills like communication, delegation, and strategic thinking.

Management, administration, and leadership are related but distinct, as management focuses on setting and achieving goals, while leadership centers on influencing and motivating people toward those goals. This article covers key management concepts, the skills needed to lead a team effectively, and how to strengthen your managerial abilities.

If you're ready to start building management skills, enroll in the Microsoft Project Management: Build Job-Ready Skills Professional Certificate to strengthen core management competencies like project planning and team leadership.

What are management concepts?

As an aspiring manager, you’ll need to have a strong grasp of the five fundamental management concepts: 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: Setting goals and creating a strategy to achieve those goals

• Organizing: Putting the plan into action by creating a structure and assigning tasks

• Staffing: Recruiting, hiring, and training employees to carry out the plan

• Leading: Motivating and guiding employees to achieve the organization's goals

• Controlling: 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: Setting goals and then working with people to achieve them

• Administration: The process of managing the details, including planning, organizing, and controlling resources

• Leadership: 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.

Stakeholder management is a valuable skill for any manager to master. If you're interested in strengthening your skills in this area, consider enrolling in the Google Data-Driven Decision Making Specialization. In weeks, you could learn to define roles, complete RACI analyses, create communication plans, and organize project documentation. By the end, you’ll earn a shareable certificate for your resume.

What can you earn from management roles?

According to the US Bureau of Labor Statistics (BLS), management professionals earned an average annual salary of $122,090 as of May 2024 [1]. Your earnings will depend on factors such as 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 2026, according to Glassdoor:

• General manager: $119,000

• Operations manager: $102,000

• Sales manager: $115,000

• Finance manager: $138,000

• Marketing manager: $105,000

• Product manager: $151,000

• Project manager: $105,000

• Program manager: $123,000

• Chief executive officer (CEO): $384,000

• Chief operating officer (COO): $354,000

• Chief technology officer (CTO): $397,000

• Chief financial officer (CFO): $359,000

Note: All salary data taken from Glassdoor as of July 2026.

Management skills to know

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 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.

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.

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.

Learn more: What Is a Business Management Degree and What Can You Do With One?

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, or you can use a high school diploma with five years of experience.

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 16-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.

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 Productside 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.

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.

Explore bite-sized ideas for meaningful career growth

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