Sandro Mancuso has been working on building self-managing teams within his company. The discussion goes into what parts of the work should be managed by the team and what parts should be managed for the team. He explains the tradeoffs of independence and control at different levels. He also explains several of the things that have worked as they've implemented these principles.
There are several powerful principles at play when you focus on providing self-direction to the people doing the work.