preview

The Benefits Of Flat Structure

Decent Essays
Valve is a self-funded company that makes use of a flat structure management. There is no management,” nobody reports to anybody else”. The flat structure removes every organizational barrier between the employee’s work and the customer enjoying that work. The company does have an owner but the owner does not interfere in the day to day management (Anon., 2014). Employees are not told what to do, they decide what they want to do. Majority of employee’s time is allocated to self-directed projects, all employees can form or dissolve groups as they see fit to pursue these projects (Anon., 2014) . Roles at Valve are fluid, nobody has an actual title, and there are no fixed job descriptions. Valve refers to its internal groups as ‘cabals’, these…show more content…
 No job titles and nobody tells you what to work on.
 Flexible, there is diversity in the company.
Problems caused by using flat structure (Morgan, 2015)
 Informal hierarchies tend to be created, people who have worked in the company longer tend to be viewed as being more senior.
 Lack of management makes accountability and reliability a bit of an issue.
 The company tends to develop cliques, much like in high school, where groups of people tend to support and work with each other but oftentimes prefer to stay to themselves and this causes problems with communication and collaboration.
 Not ideal for larger companies (e.g. 300 people or more).
 Lack of structure causes mistrust and inefficiency.

Solution to Flat structure management
Alternative to solve problems that have come about because of using flat structure management is implementing the traditional hierarchical organizational structure. This is the type of organizational structure whereby power flows from the top to the bottom. Employees follow a chain of instructions and the CEO has a final say on all operations in all divisions. Each department has a manager who runs the day to day operations. The managers also report to the CEO. (Huebsch,
Get Access