Analysis Of Valve Corporation Uses A Flat Business Structure Essay

Analysis Of Valve Corporation Uses A Flat Business Structure Essay

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Overview and Identification of Issues
Valve Corporation uses a flat business structure, in which there are few to no levels of middle management. This is possible because of the highly trained workers, and small organization size at Valve. A flat business structure allows for the employees to be involved in the decision making process of the business, therefore raising their responsibilities. By having more responsibilities workers feel more involved and are more productive, compared to a normally structured business, with many managers. There are many advantages and disadvantages to this type of structure, which affects everyone involved, whether it be managers, the employees, or even the customers.
Due to the nature of a flat business structure, there are many benefits that it can offer, but it also has its challenges. Employees can enjoy the benefits of working on their own schedules, the ability to go wherever they feel they would benefit the company most, and can have a greater feeling of importance in the company’s operations. On the other hand, some employees may prefer a more structured way of operation, they may not like that their salaries are based on their peer’s opinions, and the lack of clear authority may be an issue for some.
Managers also have benefits and challenges that they face in a flat business structure. Manager’s jobs are that much easier because the employees can set their own work schedules, the employees can manage themselves through teamwork, and managers will learn from the teams themselves if certain procedures are outdated. The flat business structure can cause challenges for the managers as well, they can have trouble with motivation of employees, they might have trouble enforcing company policies...


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...tion of self-motivated employees because the new managers could motivate those employees to do the necessary work. Not to mention, they wouldn’t be losing their employees that yearn for a more structured business model.
In addition, the simple change of having actual managers would cause the business to be more organized and to be able to enforce whatever rules and controls they may have. This would help to give more clear responsibility to the employees through the managers, because the managers would be able to focus certain employees on certain tasks that need to be done over others. Having managers would also increase the motivation to employees through formal reports from the managers to the employees. The employees would also have someone to report to in the event that something comes up that needs to be taken care of by someone in a higher position to do such.

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