Flat and Tall Organisation Structure - Valve Software

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1. Introduction The foundations set up within an organisation that creates the anatomy of how an organisation functions is called the organisation structure (Dalton et. al 1980, p. 49). There is no single structure that can be used to sufficiently operate all organisations (Schermerhorn et al. 2011, p. 244). Instead, many different forms and deviations of structures have been created to suit each organisation’s performance needs. In recent years, having to deal with the Global Financial Crisis and globalisation, many organisations have had to reevaluate their organisation structure in an attempt to maximise performance effectiveness (Corkindale 2011). This report has been created with the purpose of identifying Valve Software’s potential issue of ineffectiveness and inefficiently caused by no organisation structure or management hierarchy. This report will discuss how introducing managerial positions within Valve Software’s organisation structure will strengthen its productivity, coordination, effectiveness and efficiency. Professional research will then argue both whether a taller organisational structure should be incorporated into Valve Software or whether it is functioning effectively without this hierarchy. Finally, recommendations will be made based upon the critical analysis of the professional research. This report will argue that Valve Software should introduce managerial roles into their corporate structure, whilst continuing to keep a reasonably flat, decentralised structure. 2. Problem Identification A manager is a person within an organisation who actively plans, organises, controls and leads an group to enforce work efforts and performance achievements (Schermerhorn et al. 2011, p. 15, 20). There are many differing types of organisation structure that are found within organisations, although most organisation charts follow the formal corporate

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