Self-managing organizations are a novel organizational form that radically decentralizes decision authority to adapt to the volatile business environment and the demands of knowledge work, resulting in new resources and demands for the employees. Therefore, building on the job demands-resources theory and the person-environment fit theory, the associations of self-managing organizations with higher perceived individual autonomy were tested. Additionally, the study investigated how job crafting and handling mistakes related to the relationship between job autonomy and work engagement/satisfaction. A cross-sectional study was conducted to gather data from employees of different self-managing organizations and non-self-managing organizations, and group comparisons and path analyses were applied to test the preregistered hypotheses. Increased method and decision autonomy, job crafting behaviors, error management orientation, work engagement, and job satisfaction were found in self-managing organizations. Additionally, a surplus of perceived autonomy compared to the ideal autonomy was associated with lower work engagement and job satisfaction compared to a fit between ideal and perceived autonomy. However, job crafting did not relate to a better fit between ideal and perceived autonomy. Decision autonomy predicted higher crafting of challenging demands and structural resources for employees with low error strain. Depending on the autonomy type, learning from errors enhanced or reduced the relationship between perceived autonomy and job crafting. This study showed the importance of addressing the higher level of individual autonomy in self-managing organizations and offered starting points for interventions to support employees with handling high autonomy. Reducing error strain but increasing error learning and risking errors could help increase job crafting and work engagement, particularly in self-managing organizations.
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