Valve Software Essay

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Valve software is a successful entertainment and software company with over 300 employees. Valve software wanted to create a working environment that empowered their employees and gave them the freedom to be creative. What they have achieved is a very successful company that operates on a ‘flat’ structure where there are no managers or supervisors to report to and all employees are equals. “The company tries to keep its structure flat to remove or reduce barriers between the employees and the customers” (Valve steams ahead n.d).
Many theorists believe that people are the most important asset in any organisation and the same can be said for Valve Software. Without the right people being employed this structure could easily …show more content…

The first 6 months of employment are often crucial in determining how well someone will perform over the long term (Schermerhorn et al 2011, p.297). Valve admit that without the usual role of a manager performing checks and appraisals it can take a while to understand if someone is fitting in and a poor hiring decision if left unchecked could be costly to the company (Handbook for new employees 2012)
The function of organising involves arranging tasks, people and resources while controlling involves measuring performance and taking action to ensure results (Schermerhorn et al 2011, p.20). No one at Valve is actually told what work to do, each desk is on wheels allowing the employees the freedom to literally move themselves between projects. Employees are able to decide for themselves how to make the best use of their time and what work they believe is the most valuable. Valve currently utilise two unbiased methods of evaluating each other – Peer reviews to provide feedback on areas for improvement and stack ranking to determine suitable compensation. (Handbook for new employees 2012)
The final function of management is leadership. “Great leaders get extraordinary things done in organisations by inspiring and motivating others towards a common purpose” (Schermerhorn et al 2011, p.316). Management is no longer just

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