Principles of Management – Real Estate Management (REM) – Quick Reference Notes

Introduction

• Management: the organization and coordination of work to achieve desired results.

• A manager: someone who works with and through people to accomplish organizational goals.

• You may already be a manager in daily work (leading a project, managing a team, or coordinating tasks).

• Course aim: teach fundamentals of management as practiced today; show how management evolves with firm size; focus on producing products/services to meet market needs; marshal resources toward goals.

Course Learning Outcomes

• Discuss the purpose of management and how historical theories shaped management.

• Assess globalization's impact on operating, growing, and managing a business.

• Explain the importance of ethical practices and a diverse workforce.

• Analyze leadership elements and the value of an effective, cohesive workforce.

• Analyze methods of empowering employees and managing conflict.

• Examine planning and strategy formulation.

• Determine how organizational structure and technology advance an organization.

What Is Management? Real Estate Management Perspective

Definition

• Management = planning, organizing, leading, and controlling resources to achieve organizational goals.

• In Real Estate Management (REM): coordinate resources, people, and processes to meet objectives (firm, portfolio, or project).

REM Coverage (key tasks)

• $Planning$ marketing strategies for property launches

• $Organizing$ open-house schedules and client meetings

• $Leading$ sales teams to meet quarterly targets

• $Controlling$ project budgets and property operations

Case Example

• Property developer launching a mixed-use project; project manager sets sales targets, organizes weekly site tours, leads sales team, monitors reservations.

Discussion Question

• Which planning/leading/controlling actions are most critical for a successful residential launch?

Mintzberg’s Managerial Roles applied to REM

• Interpersonal Roles: build trust with clients, developers, investors

• Informational Roles: stay updated on market trends, zoning laws, price movements

• Decisional Roles: negotiate property deals, resolve tenant disputes, select marketing channels

Case Example

• Leasing manager decides whether to accept a lower rent offer vs long-term occupancy.

Discussion Question

• Which managerial role is most critical for a real estate broker handling high-end clients? Why?

Characteristics of the Manager’s Job

• Dynamic: property values and demand shift quickly

• People-Oriented: client relationships, broker networks, team coordination

• Time-Sensitive: deadlines for closings and milestones

• Regulation-Dependent: must follow laws (e.g., RESA) and local ordinances

Case Example

• A property manager must replace a tenant within $30$ days to avoid revenue loss.

Discussion Question

• How can REM managers balance time-sensitive sales with due diligence?

Managerial Decision Making

• Develop data-driven, client-centered decisions:

  • Investment: which property to acquire/list/sell

  • Pricing: competitive yet profitable pricing strategy

  • Marketing: traditional vs. social media channels

Case Example

• Broker deciding between exclusive listing or open to multiple brokers for faster sales.

Discussion Question

• What tools or data would you use to inform pricing decisions for a commercial property?

Performance of Individuals and Groups

• Individual performance: e.g., meeting monthly quotas, lease management

• Group performance: e.g., team achieving occupancy targets

• Evaluate with quantitative KPIs (sales, revenue) and qualitative KPIs (client satisfaction)

Case Example

• A team of $5$ agents sells $50$ units in $6$ months by collaborating on open houses and referrals.

Discussion Question

• How would you measure group performance in a property leasing department?

Quality Decision Making

• High-quality real estate decisions involve:

  • CMA (Comparative Market Analysis) before pricing

  • ROI analysis for rental properties

  • Environmental and sustainability (ESG) considerations

Case Example

• Developer considers building in a flood-prone area; quality decision includes feasibility studies, flood mitigation, and community consultations.

Discussion Question

• How do environmental considerations impact real estate investment decisions?

What’s Your Learning Style?

• Recognize whether you are visual, auditory, or kinesthetic to tailor REM training:

  • Visual: site plans and maps

  • Auditory: client negotiations

  • Kinesthetic: site inspections and staging

Activity

• Identify your learning style and discuss how it helps in client presentations or site inspections.

History of Management

• From scientific management to modern strategic management; relevance to REM:

  • Scientific Management: streamline property listing processes

  • Administrative Theory: structure brokerage/property management firms

  • Human Relations Movement: improve client relations and agent motivation

  • Modern Management: CRM systems, virtual tours, data analytics for sales/marketing

Case Example

• AI-powered CRM tools track client inquiries and automate follow-ups.

Discussion Question

• Which historical management theory best supports today’s property sales strategies?

Assignment

• Write a 1-page reflection on how you can apply management roles and principles to your future real estate career, using specific examples from the Philippine property market.

Unit Coverage (context for course)

• Unit 2: Historical Development and Globalization

• Unit 3: Organizational Culture, Diversity, and Ethics

• Unit 4: Leadership and Teams

• Unit 5: Managing Employees: Motivation, Empowerment, and Conflict Resolution

• Unit 6: Human Resource Management

• Unit 7: Planning and Strategy Formulation

• Unit 8: Decision-Making

• Unit 9: Organization Structure, Change, and the Future of Management

Prepared by

• Dr. Mark Anthony Pelegrin (Professor)