This article discusses social management challenges in Arctic region, using the example of existing social issues in the cities of the Yamalo-Nenets Autonomous Okrug. The theoretical concept is based on the authors' ideas, who postulate rational management principles, the evolutionary transformation of modern society principles that imply the mutual influence of economic and social factors. In additional, this concept advocates the importance of humanization and harmonization of public relations, the significance of the human factor, and citizens' initiatives. Improving the social sphere in the northern region can be achieved through successful business practices and implementing market mechanisms that balance state, public, and private interests. The article argues that optimizing managerial regulation in the region's social sphere is based on well-established legislative practice of social welfare.An analysis of scientific literature, along with qualitative and quantitative empirical research, uncovered the most pressing social issues in the region. This analysis led to insights about the current state of the social sphere in the Yamalo-Nenets Autonomous Okrug and helped identify strategies to optimize management approaches that aim to enhance public trust in government authorities. The interpretation of primary sociological data allowed to highlight critical areas for socio-economic development in the region's cities, such as healthcare, education, housing affordability, rising utility prices, and access to consumer goods. The survey results revealed respondents' priorities, which included health, family, financial stability, employment, etc. Furthermore, the survey results underscored the necessity of considering public opinion on enhancing social infrastructure and establishing continuous feedback with residents regarding vital socio-economic development sectors in cities.In conclusion, the study emphasizes the importance of improving socially-oriented managerial efforts and adopting principle of integrity that considers both economic and social indicators. These indicators enhance overall satisfaction with the quality of public services, including medical, educational, and other services. Only a comprehensive strategy for addressing social challenges is crucial for fostering public well-being, improving human capital, and optimizing the social sphere in the region.