Self-managed teams are small groups of employees who determine their own work processes with little or no supervision. They have become popular as they can increase productivity and reduce costs when implemented effectively. A self-managed team is responsible for technical and management tasks, with responsibilities rotated among members. Benefits include greater ownership over work and flexibility to cover absences. However, some challenges are adjusting to less supervision, groupthink, and resistance from managers accustomed to traditional structures. Leaders must empower teams while balancing organizational expectations.