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Firms around the world are facing an ever‐increasing array of employee‐related problems, such as decreasing productivity, faltering quality of products, persistent absenteeism, worker dissatisfaction, and high levels of turnover. Exacerbating this situation, there is a worldwide recession and explosive geopolitical developments, which have led to great uncertainties in world markets. For many organizations, the need to respond effectively to these problems is of paramount importance, as their economic viability hangs in the balance. To deal with the challenges of today′s global environment and to stay competitive in the world marketplace, organizations need to look beyond the sphere of traditional directive management and the limited application of participative management. One concept, which is showing particular promise in this regard as a comprehensive solution, is that of self‐managing teams (SMTs). Explores the essence of this concept, the unique role which it assigns to management, some of its drawbacks and benefits. Also suggests some critical requirements for successful implementation.

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