In the work setting I've never seen management determined by vote, but you see the phenomenon just the same. Most people who want to climb the management ladder are normal, sane people, but the power-hungry are the ones who try the hardest to get to the top. In an organization that doesn't properly evaluate people you end up with the brutes in charge, which makes life miserable for everyone else.
The funny thing is that the first democracy which called itself a democracy was perfectly aware of this problem - and the tyranny of informal leaders - and had a simple and effective solution to both problems: filling chairs by lottery.
The full article. Her point seems to really boil down to this:
We cannot decide whether to have a structured or
structureless group, only whether or not to have a
formally structured one. Therefore the word will not be
used any longer except to refer to the idea it
represents. Unstructured will refer to those groups
which have not been deliberately structured in a
particular manner. Structured will refer to those which
have. A Structured group always has formal structure,
and may also have an informal, or covert, structure. It
is this informal structure, particularly in
Unstructured groups, which forms the basis for elites.
And she continues on, the next section is particularly, interesting, describing how these elites she refer to create a network of communication which others aren't party to.I really recommend reading the whole thing. It's a pretty interesting article and, I think, gets at the problems (solvable in some or many cases) in any large organization, structureless or not.
EDIT: And do read the article. It's much more than just the snippet I included. That's just her thesis, the rest explains it better and the consequences of insisting on informal organization.
Clear lines of ownership and responsibility do wonders for just letting coders code, and let everyone else decide what they code.
An example from history. Elections are actually how volunteer units in the early days of the American Civil War selected their officers. Every soldier got one vote, the whole regiment got together and cast their ballots, and the guy who got the most votes got to be the commanding officer. Very democratic!
With just one problem: in almost all cases, soldiers voted overwhelmingly for officers who promised not to make them do all the tedious army stuff they hated, like drilling in formation and practicing their marksmanship... which it turns out are actually very important things for a unit to do, if it wants to actually perform in combat. So these units had a bad habit of dissolving into mobs of terrified amateurs (and therefore getting slaughtered) the moment they entered battle.
Eventually it was decided that it was more important that army units be able to function in combat than that they be democratic organizations, and the elected "soldier's friend" officers were kicked out and replaced with hardasses. The soldiers hated them, and swore under their breath every time they were called out to drill yet again. But they learned how to fight.
Every single member of the team having to keep up with every single other person is unnecessary and impossible past a certain number of people. Certain things don't scale well.
I was treasurer of my housing co-op and we had one full-time employee who reported to me and the board. That employee (the coordinator) hired contractors for maintenance, bookkeeping, as well as things like the laundry machines.
Even large co-ops (like clothing stores) have the members vote a board in that sets up the structure.
A manager who is getting lousy reviews from engineers is going to face difficulties with the higher ups.
That said, the democratic approach has a lot of other issues in the form of cohorts and cliques. A manager might secure just enough votes to stay in power by having quiet conversations with some employees, using power to give them breaks, etc. I'd love to see a frank discussion or proposal about how to dissuade that.