An organisation without management basically relies on having people who all act rationally all the time and in the best interest of the company as a whole. Th

An organisation without management basically relies on having people who all act rationally all the time and in the best interest of the company as a whole. The problem is that not many people like that exist and can be recruited. For a sufficiently small organisation peer pressure and a clear-cut common goal may help smooth over the imperfections of the individuals involved. But once the organisation grows to a certain level, those forces will start losing their effectiveness and you require a substitute to ensure reasonably smooth operations. I think the key take away is that there is no perfect organisational structure. All you can do is to find a structure that works best for the current situation, but you need to be prepared to make changes if your organisation's current stage of development requires it.