Self-management is a company/organization where decisions are made by workers, they decide what to do, where to do and how to do it, instead of being decided by the owner or manager which nowadays are the majority. It is a system that can provide efficient production with goods and power equitably at the same time. Efficiency in self-management The self-managed enterprise and the capitalist enterprise can be distinguished by the different objectives they achieve, while the objective of the self-managed enterprise is to maximize income per worker rather than profit. Using the capitalist "twin" company as a reference, it is possible to observe the inefficiency of self-management. In the case with only one input variable, the self-managed company reacts differently. The supply curve bends backwards and prices are very sensitive to any changes in costs and demand. If the price increases, the firm will produce less, at least less than a normal capitalist firm will produce. Consequently, the increase in prices will decrease employment and production in self-management. Workers are hired only under the condition that the addition to net revenue exceeds the current quota since the hiring decision depends on how much the worker will get from a share of the firm's net revenue. The employment equilibrium now depends on the average structure of the net revenues of each company, the relationship with the marginal productivity of labor in other companies is no longer necessary. As a result, since workers now maximize income per worker, society as a whole now produces less than is physically possible for a given level of input, which leads to inefficiency. Furthermore, wages no longer exist while each worker now receives an equal share as payment for labor service. Where unemployed workers are no longer able to... half of the paper......slavia is enough to use only as an introduction, to get a broader picture of self-management, several cases should be studied .Works CitedJadranko Brkic ; 2013; Failure of workers' self-management in Yugoslavia: Kardelj against Friedman http://www.slobodaiprosperitet.tv/en/node/870Diane Flaherty; Self-management and requirements for social ownership: lessons from YugoslaviaZoran Eric; The Third Way: The Experiment in Worker Self-Management in Socialist Yugoslavia Melvin D. Barger; 1988; Yugoslavia: problems in the middle Yugoslavia, Economy; http://www.countriesquest.com/europe/yugoslavia/economy.htmStephen M. Sachs; Some reflections on workers' self-management in Yugoslavia Howard M. Liebman; 2013; Comments on the Effects of Workers' Self-Management on Yugoslav Joint Ventures Brain Martin; 1990; Eradication of War, Self-Management
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