Valve Steams Ahead

438 Words2 Pages
1. Do you think that Valve fits any existing organisational structure theory, or is it completely new? Explain your answer . I agree with Valve’s self-assessment of being an “organic structure”. It fits all of the characteristics of an adaptive organization including many teams and tasks forces (being the different projects that each employee is a part of), informal co-ordination can be seen by the ability of staff to choose who they will work with and how long for and very decentralized authority – all employees are responsible for themselves are just a few examples. 2. Considering the contingencies in organisational design, why does Valve structure itself in this way? Software and technology is a constantly changing environment. To stay ahead innovation is critical – a software company like Valve needs to be the first with the new game or software, once someone else has developed it then your product has lost significant relevance in the market. This makes the environment unstable, the strategic focus must be about innovation. As mentioned in the case study, Valve believes formal structures “limits staff innovation potential” therefore, I believe they have structured their business to give their employees flexibility to maintain motivation which in turn encourages innovation. 3. What problems do you foresee that Valve may encounter as it grows beyond staff numbers of 300? Whilst flexibility for staff to choose who they will work with and for how long encourages staff to stay motivated -I believe this will cause concerns for Valve as the company grows. By staff not maintaining their commitment to projects they sign on to – this can lead to a loss in productivity in having to replace team members that have moved on to other projects or unhappy employees that will need to cover the remaining work not finalized by that staff member. Valve will need to look
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