---
title: "Self managed teams: self directed or self-organized?"
description: The terms self-managed teams, self-directed teams, and self-organized teams are often used interchangeably. However, there are subtle differences that are important to understand as practitioners explore variations of decentralized organizational structures.
image: https://managementkits.com/hubfs/Imported_Blog_Media/Management-Kits_Self-managed-teams-self-directed-or-self-organized-3.png
---

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 30 Aug 2020

# Self managed teams: Are they self directed or self organized?

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**The terms self-managed teams, self-directed teams, and self-organized teams are often used interchangeably. However, there are subtle differences that are important to understand as practitioners explore variations of decentralized organizational structures.**

---

 

First, let’s try and define the terms self managed teams, self directed teams, and self organized (or self organizing) teams.

- **Self-managed teams** are work teams that are not (fully) integrated into a top-down chain of command and that do not have a single team leader with complete authority over the team’s work. The term can capture [varying degrees of decentralized authority and could thus encompass both radical and moderate approaches](https://www.managementkits.com/blog/2020/3/21/decentralized-organizations-traditional-and-radical-approaches) towards decentralized decision-making.
- **Self-organized teams** can be defined as a kind of self-managed team in which decision-making authority does not lie completely with the team. For example, the team’s purpose and goals are dictated from the outside, e.g. from a boss role within the managerial hierarchy. But beyond those decisions that are made from “above”, the team can organize itself and could have decision-making authority about how to reach a given goal.
- **Self-directed teams** can be defined as self-managed teams that have more decision-making power than “just” self organizing. The authority of self-directed teams would extend, for example, to strategic questions including the team’s purpose and goals. Such self-directed teams could also be called self-governing teams, as governance implies a wider scope than merely self organization.

In short, self-directed teams are autonomous, whereas self-organizing teams are autonomous only in how they do things (not in why they do things or in what they do).

 

## Examples of self-managed and self-directed teams: some are self organizing, others are fully autonomous

[Agile or scrum teams](https://www.managementkits.com/blog/2019/5/13/reinventing-teams-and-renaming-them-at-the-same-time) in this sense would be understood as self-organizing teams, with some features of the methodology that give them a reduced form of self-directedness. (See also [Mary de Jonge’s](https://medium.com/serious-scrum/self-organization-versus-self-management-f7fddfe62851) discussion of the concepts with regard to scrum coming to this conclusion).

Teams (or [circles](https://www.managementkits.com/blog/2019/5/13/reinventing-teams-and-renaming-them-at-the-same-time)) in [Holacracy](https://www.managementkits.com/blog/2019/12/5/what-org-designers-can-learn-from-holacracy) on the other hand, have more means to direct themselves, while being embedded in the overall organizational governance structure.

Famously, [cabals, as project teams are called at the game development company Valve](https://www.managementkits.com/blog/2019/5/13/reinventing-teams-and-renaming-them-at-the-same-time), are truly self-directed, as are employees when they choose to affiliate with a cabal.

These examples of self-directed work teams are embedded in a wider organizational system. Varying levels of team autonomy are a function not only of the chosen organization model but also of the [particular context in which the self-managed organization operates](https://www.managementkits.com/blog/new-forms-of-organizing-the-role-of-context).

 

## Use the Management Functions Matrix to define the degree of self-directedness for self-managed work teams

If you consider granting teams in your organization higher degrees of autonomy, without committing to a radical organizational model in an “all in” fashion, we recommend working along general management functions to specify decision-making authority.

By doing this you can determine and codify what the team is free to do (and how it can do it) , which decisions it can make, e.g. regarding its purpose, its budget, or its membership, and how those decisions are aligned across the wider organization.

At Management Kits, the [Management Functions Matrix](https://www.managementkits.com/blog/2020/8/31/using-management-functions-to-empower-self-directed-teams) is our research-based approach to enabling this analysis and design work. It is included in the [Organize for Self Management Kit](https://kits.managementkits.com/p/organize-for-self-management).

 

 

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Note: I am grateful for my conversation with [Beat Fraefel](https://fraefelpartner.ch/), which inspired this discussion differentiating between self-organized and self-managed teams.

[2020 b](https://managementkits.com/blog/tag/2020-b), [Self-managed teams](https://managementkits.com/blog/tag/self-managed-teams), [Self-organizing teams](https://managementkits.com/blog/tag/self-organizing-teams)

## Related posts

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## [How does leadership work in self-directed teams?](https://managementkits.com/blog/2020/7/10/why-self-directed-teams-require-more-leadership)

When self-managing organizations get rid of boss roles, shared leadership within self-directed...

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## [Using management functions to empower self-directed teams](https://managementkits.com/blog/2020/8/31/using-management-functions-to-empower-self-directed-teams)

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## [Implementing self-management - key learnings of an HR team](https://managementkits.com/blog/2019/11/23/five-key-learnings-from-an-hr-units-self-management-experiment)

I recently caught up with a group of HR experts whose organizational unit (counting over 60 people)...

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