Self-management is a decision of a company/organization that is made by the workers, they decide what to do, where to do and how to do, instead of being decided by the owner or managers who are the majority these days. It is a system capable of equitably providing efficient production with goods and energy at the same time. Self-Management Effectiveness Self-managed firms and capitalist firms can be distinguished by the different goals they achieve, while the goal of the self-managed firm is to maximize income per worker rather than profit. Using the “twin” capitalist enterprise as a reference, the ineffectiveness of self-management can be observed. In the case of a single input variable, the self-managed company reacts differently. The supply curve bends backward and prices are very sensitive to any changes in costs and demand. If prices rise, the company will produce less, at least less than a normal capitalist company would produce. As a result, rising prices will decrease employment and production in self-management. Workers are only hired under the condition that the addition to the net income exceeds the current share since the hiring decision depends on the share the worker will receive from the company's net income. The balance of employment now depends on the structure of the average net income of each company, relationships with the marginal productivity of labor in other companies are no longer necessary. As a result, since workers now maximize their income per worker, society as a whole now produces less than is physically possible for a given level of inputs, leading to inefficiency. Furthermore, wages no longer exist while each worker now receives an equal share as remuneration for their work. Where the unemployed are no longer able to...... middle of paper ......slavia is only sufficient as an introduction, in order to have an overview of self-management, different cases should be studied.Works CitedJadranko Brkic; 2013; Failure of workers' self-management in Yugoslavia: Kardelj versus Friedman http://www.slobodaiprosperitet.tv/en/node/870Diane Flaherty; Self-management and social ownership requirements: lessons from YugoslaviaZoran Eric; The third way: the experience of workers' self-management in socialist YugoslaviaMelvin D. Barger; 1988; Yugoslavia: Troubles halfway Yugoslavia, Economy; http://www.countriesquest.com/europe/yugoslavia/economy.htmStephen M. Sachs; Some thoughts on workers' self-management in YugoslaviaHoward M. Liebman; 2013; Comments on the effects of workers' self-management on Yugoslav joint venturesBrain Martin; 1990; Uprooting war, self-management