diff --git a/internal/controller/release_controller.go b/internal/controller/release_controller.go
index 91595df4c..6e2091ccb 100644
--- a/internal/controller/release_controller.go
+++ b/internal/controller/release_controller.go
@@ -25,6 +25,7 @@ import (
 	sourcev1 "github.com/fluxcd/source-controller/api/v1"
 	"github.com/pkg/errors"
 	"helm.sh/helm/v3/pkg/action"
+	"helm.sh/helm/v3/pkg/chartutil"
 	"helm.sh/helm/v3/pkg/storage/driver"
 	apiextensionsv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
@@ -131,6 +132,8 @@ func (p *Poller) ensureManagement(ctx context.Context) error {
 		if err != nil {
 			return err
 		}
+
+		hmcConfig := make(chartutil.Values)
 		release, err := actionConfig.Releases.Last("hmc")
 		if err != nil {
 			if !errors.Is(err, driver.ErrReleaseNotFound) {
@@ -138,21 +141,28 @@ func (p *Poller) ensureManagement(ctx context.Context) error {
 			}
 		} else {
 			if len(release.Config) > 0 {
-				values, err := json.Marshal(release.Config)
-				if err != nil {
-					return err
-				}
-				_ = applyDefaultCoreConfiguration(mgmtObj)
-				mgmtObj.Spec.Core = &hmc.DefaultCoreConfiguration
-				mgmtObj.Spec.Core.HMC.Config = &apiextensionsv1.JSON{
-					Raw: values,
-				}
+				helm.OverrideValuesWithValues(hmcConfig, release.Config)
 			}
 		}
 
+		// Initially set createManagement:false to automatically create Management object only once
+		helm.OverrideValuesWithValues(hmcConfig, map[string]interface{}{
+			"controller": map[string]interface{}{
+				"createManagement": false,
+			},
+		})
+		rawConfig, err := json.Marshal(hmcConfig)
+		if err != nil {
+			return err
+		}
+		mgmtObj.Spec.Core = &hmc.DefaultCoreConfiguration
+		mgmtObj.Spec.Core.HMC.Config = &apiextensionsv1.JSON{
+			Raw: rawConfig,
+		}
+
 		err = p.Create(ctx, mgmtObj)
 		if err != nil {
-			return fmt.Errorf("failed to create %s/%s Management object", hmc.ManagementNamespace, hmc.ManagementName)
+			return fmt.Errorf("failed to create %s/%s Management object: %s", hmc.ManagementNamespace, hmc.ManagementName, err)
 		}
 		l.Info("Successfully created Management object with default configuration")
 	}
diff --git a/internal/helm/values.go b/internal/helm/values.go
new file mode 100644
index 000000000..a533b44cc
--- /dev/null
+++ b/internal/helm/values.go
@@ -0,0 +1,45 @@
+// Copyright 2024
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package helm
+
+import (
+	"helm.sh/helm/v3/pkg/chartutil"
+)
+
+func ToValues(v interface{}) (chartutil.Values, bool) {
+	switch c := v.(type) {
+	case chartutil.Values:
+		return c, true
+	case map[string]interface{}:
+		return c, true
+	default:
+		return nil, false
+	}
+}
+
+func OverrideValuesWithValues(dst chartutil.Values, src chartutil.Values) {
+	for k, sv := range src {
+		dv, ok := dst[k]
+		if ok {
+			dvc, dvisv := ToValues(dv)
+			svc, svisv := ToValues(sv)
+			if dvisv && svisv {
+				OverrideValuesWithValues(dvc, svc)
+				continue
+			}
+		}
+		dst[k] = sv
+	}
+}