Earlier quoted context omitted.
Collectives of people don't work The existence of armies and corporations suggests otherwise. I think you may be over-stretching the meaning of the term here to suggest some sort of entity that displaces individual cognition.
Corporations are not collectives. They are organizations of people with self-interest, not selfless-interest. Armies consist of people forced to cooperate, usually under threat of death or at least imprisonment. Such cooperation isn't very efficient, and indeed armies tend to be extremely wasteful of lives, treasure and property. (Volunteer armies tend to be less wasteful of lives.)
Which is neither here, nor there.
First because nobody said people on collectives can't also have self-interest: just that they work together for the benefit of the collective too.
That said, there are also collectives where self-interest comes second (to the point of sacrificing yourself for them) and they work just fine. In fact the whole of human history they have been instrumental: families, armies, countries, and so on.