Pros and cons of self-governing companies as exemplified by Semco and Zappos

Today we’ll talk about the advantages and disadvantages of organizations that are managed not by a group of managers, but by each employee. Specialists will find out whether it is worth getting a job in such a company, and entrepreneurs will decide for themselves whether they are ready to choose the path of self-government and release the reins of control.

So, let’s imagine that an ordinary worker in one of the Russian companies had a brilliant idea on how to reduce production losses. From this moment, he has several options:

do nothing, following the principle of “initiative is punishable”;
go to the immediate boss and try to convince him of the prospects of the proposal;
Describe your thoughts and send them to a special mail to collect ideas, if any.
In all these options, the chance that the idea will be realized, even if it is really sensible, tends to zero. The boss may not realize the value of the proposal, and top managers can’t get to the mailbox, which they started several months ago, following the fashion. Continue reading →