Workers' self-management is a form of organizational management based on self-directed work processes on the part of an organization's workforce. Self-management is a defining characteristic of socialism, with proposals for self-management having appeared many times throughout the history of the socialist movement, advocated variously by democratic, libertarian, and market socialists as well as anarchists and communists. An economic system consisting of self-managed enterprises is sometimes referred to as a participatory economy, self-managed economy, or cooperative economy. This economic model is based on the notion that people should be able to participate in making the decisions
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In the economic theory of self-management, workers are no longer employees but partners in the administration of their enterprise. Supporters of self-managed cooperatives cite the importance of autonomy for productivity in the firm and economists in favor of self-management argue that cooperatives are more efficient than centrally-managed firms because every worker receives a portion of the profit, thereby directly tying their productivity to their level of compensation.
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