Are Self-Managed Teams Right for Your Organization?

Emma Hersh
May 3, 2024

Disadvantages of Self-Managed Teams

While there are lots of benefits to self-managed teams, they are not without their disadvantages. Here are a few.

Disadvantage 1: Employees must be Self-Motivated

The number one assumption an organization must make when adopting self-managed teams is that all employees can and are self-motivated and want to be self-managed. This means that the employee must have the drive and discipline to take on the necessary work without much direction. These types of employees are self-starters that can be trusted to accomplish organization and team goals without much supervision. They need to be comfortable with not having a clearly defined SOP or way forward to complete a task often developing the solution themselves.

While there are plenty of people that have these qualities, there are also plenty without. Organizations will need to carefully evaluate the people they hire to ensure they have these qualities. Additionally, team members should be encouraged to provide 360 feedback on each other’s performance to identify if team members are disengaged or not adequately supporting the team.

Disadvantage 2: Groupthink

Being self-managed can sometimes lead to “groupthink” where team members are at risk of going along with the majority instead of conducting thorough evaluations of proposed plans and solutions. Teams can combat this by encouraging team members to ask “Why?” SEMCO, a successful Brazilian manufacturing company, encourages their employees to fearlessly ask “why?” SEMCO believes that encouraging employees to ask “why?” encourages them to think thoroughly and creatively which leads to the best results for the organization as a whole.

Disadvantage 3: Not Suitable for Large Teams

Self-managed teams work best when they are small. The generally accepted team size usually falls between four and 13 people. Teams don’t work well when there are too many people. This increases bureaucracy and slows down the decision processes. Think about meetings or working groups you’ve participated in, in the past. Did you make well-analyzed decisions more quickly when there were five people or 30 people? The more team members you have the more communication paths are opened. If your organization requires larger teams to come together to make decisions, you may need managerial input to direct and manage the decision process or risk that the large self-managed teams will slow down the process and decrease productivity.

Conclusion

Removing managers and creating self-managed teams within an organization can be a great way to increase employee engagement and increase the organization’s efficiency. While there are disadvantages to this type of organization structure, with the right implementation, the benefits far outweigh them.

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