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What does the "self organizing" in "self organizing Scrum team" mean?
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“Scrum Teams are self-organizing and cross-functional. Self-organizing teams choose how best to accomplish their work, rather than being directed by others outside of the team.”
Often, managerial hierarchy can get in the way of self-organization. But even when that isn't the case, it can still be difficult for teams to effectively manage themselves. Ultimately, the responsibility for bringing this out of the team falls on the ScrumMaster.
“The best architectures, requirements, and designs emerge from self-organizing teams.”
See this article for a good explanation. This quote explains the heart of it:
Self-organization does not mean that workers instead of managers engineer an organization design. It does not mean letting people do whatever they want to do. It means that management commits to guiding the evolution of behaviors that emerge from the interaction of independent agents instead of specifying in advance what effective behavior is.
The team approaches a project, and, based on the project at hand, decides how best to allocate its resources to take advantage of each team member's various strengths.
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What does the "self organizing" in "self organizing Scrum team" mean?
It means this: No one – not even the ScrumMaster - tells the Team how to turn Product Backlog into increments of shippable functionality. The Team figures this out on its own. Each Team member applies his or her expertise to all of the problems. The synergy that results improves the entire Team’s overall efficiency and effectiveness.
Reference: Scrum Guide
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