Background: Remote work has in recent years been adapted by many organizations and are described to challenge the traditional managerial role. Simultaneously, generation Z are taking an increasingly large part of the labor market and bring new behaviors to organizations and managers. The combination of a remote working environment with a new generation workforce implies for a changing management situation, something a manager needs to consider. However, there is insufficient research that puts these aspects in relation to each other and recognize this changing management situation. Moreover, this thesis has a focus on motivation and loyalty due to the recognition of potential challenges for a manager within these areas. 

Purpose: The practical situation generated by generation Z and remote work is not sufficiently dealt with in literature. It has failed to provide knowledge concerning how managers in a remote working environment manage their generation Z employees. The purpose of this thesis is therefore to increase the understanding of the changing management situation that is created by generation Z that works remotely. 

Method: A qualitative research design has been applied to fulfill the purpose of this thesis and has been guided by an abductive approach. 12 semi-structured interviews were conducted and a thematic analysis has been utilized to interpret and analyze the empirical material.

Conclusion: This thesis found four main challenges that can arise in this changing management situation which are interaction with the employees, creating and maintaining relationships, stimulating individualism and personal development, but also to convey the feeling of being significant and balancing freedom with oversight. It also presents practices managers can use to face these challenges which are to find suitable ways to interact, prioritize social activities and strengthen connection to the company brand, nurture personal growth, providing recognition and autonomy. Additionally, the changing management situation is complex where several different parts are intertwined and affect each other. It was also found that as a manager, leadership qualities with a transformational leadership style is to be preferred when approaching this changing management situation.