PATCH 3: CASE STUDY REPORT 1 REFERENCES 9 SELF-ASSESSMENT 11
PATCH 3: CASE STUDY REPORT
1. Introduction
Valve Corporation was formed by two former Microsoft employees who are Gabe Newell and Mike Harrington in 1996. At the beginning, they were based in Kirkland, Washington and were a Limited Liable Company (L.L.C) (Giantbomb, 2013). Valve is an American video game development and digital distribution that allocated in Bellevue, Washington. Valve had created six games series in the future years which are Half-Life (1998), Team Fortress (1999), Portal (2007), Counter-Strike (1999), Left 4 Dead (2008) and Day of Defeat (2005). Since Valve Corporation is found, it has expanded both in scope and commercial value.
Valve Corporation had been received few award since 2008. On 2008, Valve Corporation announced the acquisition of Turtle Rock Studios. While on 2010, Valve won The Escapist Magazine’s March Mayhem tournament for the best developer of 2010. In 2012, the company acquired Star Filled Studios, a two-man gaming company to open a San Francisco office. In 2013, Valve decides to stop the operation as it was decided to make some benefit for future arrangement.
Valve is formed as a company which have around 300 employees but no managers or bosses at all to operate whole company (Suddath, 2012). Hence, this report is written to discuss the organisational culture and organisational structure of valve. The two discussion topic is to be analysed after introduce background and information of Valve Corporation.
2. 3. Analysis 4.1. Organisation Culture
Organisation culture is the behaviour of human who are part of the company and the meanings that people reacts to their actions. Cultures shared as values, beliefs and norms which will influence the employees think, feel and act toward insides or outsides organisation. (Pettigrew, 1979)
Deal and Kennedy (1982) introduced four main types of organisational culture. In term of Valve, they have a work-hard, play hard culture as they have a great workplace which provides a gym room, a massage parlor, a full-service cleaner and so on (Denning, n.d.). As stated in Valve new employee’s handbook, the new employee had been told to relax and enjoy these things. Work-hard, play hard culture means that the employees take few risks and with quick feedback to success their works. Valve is highly dynamic and place priority on customers and their needs (Mullins, 2010).
Besides, Valve also have a tough-guy, macho culture. It has their high risk taking because it is no boss or even manager. Employees are the people who make decision by own self, but not higher authority. So, once employees are making wrong decision, Valve will face a high crisis.
There are few characteristic to evaluate Valve’s culture. The employees in Valve are required to be innovative but low in risk taking as in 7 dimensions of Culture by O’Rielley et al (1991). They want innovators to maintain an environment where they’ll flourish. When if an employee screw up a project, it’s doesn’t matter with it. They will treat this experience as opportunities to learn. They are always thinking that the mistake can be repair or make up for it. So, there are low in risk taking, they will never be afraid to run an experience to collect more data, screwing up is also a great way to make more prefects on a model (Valve Corporation, 2012). Valve is more focus on outcome more than detail. They only concentrate on the result and don’t care about how these outcomes are achieved. Followed by team orientation, Valve is running as hierarchy structure. Based on it, employees aren’t have own department or even group. But they are allowed to form a temporary group to get a project done (Valve Corporation, 2012). Although the project can be done by own, but teamwork are needed. One person’s power, knowledge and technical are limited; teamwork cause work more successful and save a lot of time to avoid mistake. To make their teamwork more effective, every employee is able to move their desk and stick together with others as their desk are with wheel. Moreover, aggressive and competitive are applied on employees. No matter new employees or senior employees, they are fair in organisation. They are encouraged to be aggressive and competitive in choose and handle project with their feet but not waiting others come and persuade you to join them (Valve Corporation, 2012). Valve has also concentrate on employees. Managements may take into account the effect on employees in the organisation. Valve does not allow employees to work overtime. They are encouraging employees take time to accompany their family. Besides, the company offer all its employees and their families on a “tropical” vacation. (Suddath, 2012)
Valve Corporation has a strong organisational culture. Strong culture means that every employees in Valve may make decision by own and quickly without a lot of organizational overhead. Although Valve has a founder but he is not manager. Valve is run as a flat organisation without bosses. Valve do not have fixed job descriptions, employees are free to choose to work on whatever they think are interesting. When a few employees are take chance to in-charge a project, they will form a temporarily project team. After finish the project, they are allowed to move to another group to in-charge another project. In valve, everyone is a designer; everyone can question each other’s work (Valve Corporation, 2012). Moreover, Valve helps new people find their way to show their talent and experience. The culture is strong where the employees hold the same type of beliefs and values as concern to the culture (Deal and Kennedy, 1982). The advantage with strong culture is even they don’t have the person in-charge, but they are reducing the gap between each other to develop a strong relationship with form a group for a project.
The culture of an organisation may make or break an organisation. It means that it is important an organisation have its own culture. Different organisation has different culture. Organisational culture of Valve might consider special and different from some traditional organisation as it is a high risk taking organisation, but employees are encouraged work hard, play hard culture to enjoy the facilities in the office.
4.2. Organisation Structure
The structure of an organisation can define how activities such as task allocation, coordination and supervision are directed towards the achievement of organisational aims (Pettigrew, 1979). It can also be considered as the viewing glass or perspective through which individuals see their organisation and its environment (Jacobides, 2007). A good organisational structure may guide employees to work together to achieve organisational goals. Well, a good organisational structure will only work if the corporation applies the correct structure.
Valve Corporation formed as a company has a flat management structure. So Valve can easy to control and handle this large company. Valve run as this structure mainly is to create a wider span of control for employees. Wider spans will be more effective when supervisor or manager cannot make a conclusion. Although it is a large company but Valve is boss less. Everyone in the company is fair. Valve didn’t have department or even manager. It has a founder or president- Gabe Newell, but he isn’t manager (Valve Corporation, 2012). Gabe Newell will not control employees what to do and what need to do. It is also the best way for employees as they no need report to any else what they done.
According to Bloomberg Business Week written by Claire Suddath, the reason Gabe Newell create this workplace without manager is because of his experience at Microsoft for 13 years. He realized that Valve’s job was to create games, every employees in valve are needed some important skill such as technological, design and artistic (Suddath, 2012). Managers’ works were managing procedures; it is not always needed in Valve. This situation can avoid manager grabs their ideas and submit to president as their ideas. Thus, employees will be motivated and pit more effort onto their work as every one of them is fair on organisation. However, they are allowed to form into a group when they are handling a project. When they form into a group, they are able to move their desk and combine them to each other as their desks are stick with wheels. In a group, they all are designer, they can judge other person work (Valve Corporation, 2012).
The evidence above shows that Valve is an organic organisation. Organic organisation is characterised by flatness, low specialisation and also decentralisation (Chantal, 2012). Valve is in flat structure, so they are apply horizontally communications and interactions. Valve is underline in low specialisation as every employee is equality and they are sharing their knowledge and information among the employees. By sharing their knowledge and information, it can save a lot of time in figure out some question or answer.
Besides, Valve is a decentralisation organisation as Valve does not have formal authority such as positional rights. As mentions, every employee is freedom in choosing what work they like to do at (Kelion, 2014). They are allowed in holding more than one project in one time as long as they can handle it. While, they formed a team out, they will choose a leader to act as centre but not the person who make final decision. Everyone is encouraged to make their own decision, but if too much decision came out, the final decision will made by customer. The most popular games will be the final decision. The advantage of decentralization for Valve such as it allow to make a quick and better decisions without go through many level of authority (KULDEEP, n.d.). It improves organisational communication between employees. It will also improve the motivation of employees. High motivation helps in improving productivity and working relationships.
The structure of Valve can consider as boundary less organisation. Boundary less organisation can be defined as a lack structure organisation; it approaches on the free flow of information and ideas to drive innovation, efficiency and growth in a world (Welch, n.d). This can drive employees in Valve be more creative and innovative if the information and ideas in Valve are free flow and obtained by employees.
Although the organisational structure of Valve is in flat organisation but the organisation still can handle the company well. It proves that no matter what types of organisation culture will lead a good organisation.
4. Conclusions
As a well-known entertainment company with flat organisation, Valve can define as a successful organisation. It is because it is a flat organisation means that there are no higher authorities to guide the employees. They are facing the high risk taking as no high authority can make a final decision and employees are doing the decision their own. Moreover, these will also the advantage for Valve Corporation. No high authority allowed employees to make decision their selves quickly and effectively. They no need to worry if their authority takes the employees’ idea as their own effort.
In conclusion, different organisations have their own organisational structure and culture. No matter how their structure and culture is, as long as the organisation is going smoothly and the employees are enjoying the workplace.
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REFERENCES
1. Chantal, 2014. Ordoro Blog. [Online]
Available at: https://www.ordoro.com/blog/2012/07/15/mechanistic-organization/
[Accessed 15 July 2012]. 2. Kelion, L., 2014. BBC. [Online]
Available at: http://www.bbc.com/news/technology-24205497
[Accessed 23 September 2013]. 3. KULDEEP, n.d. Preserve Articles. [Online]
Available at: http://www.preservearticles.com/201106147992/8-advantages-of-decentralization-for-decision-making-and-business-growth.html 4. Mullins, L. J., 2010. Management and Organisational Behavior. s.l.:Prentice Hall. 5. Newbry, J. S., 2013. Innovations in Company Design: Lessons from Valve SOftware. MACROJOURNALS , 1(1), p. 25. 6. Suddath, C., 2014. Bloomberg Business Week. [Online]
Available at: http://www.businessweek.com/articles/2012-04-27/why-there-are-no-bosses-at-valve [Accessed 27 April 2012]. 7. Suddath, C., 2014. Bloomberg Businessweek. [Online]
Available at: http://www.businessweek.com/articles/2012-04-25/what-makes-valve-software-the-shangri-la-of-offices [Accessed 25 April 2012]. 8. Valve Corporation, 2012. Valve: Handbook for new employee. s.l.:valve press. 9. Welch, J., n.d. HRZone. [Online] Available at: http://www.hrzone.com/hr-glossary/boundaryless-organization-definition 10. Anon., n.d. Valve. [Online] Available at: http://valvesoftware.com/index.html 11. Denning, S., n.d. Forbes. [Online] Available at: http://www.forbes.com/sites/stevedenning/2012/04/27/a-glimpse-at-a-workplace-of-the-future-valve/ [Accessed 27 April 2012]. 12. Giantbomb, 2014. GiantBomb. [Online] Available at: http://www.giantbomb.com/valve-corporation/3010-1374/ [Accessed 10 January 2013]. 13. Johnvechey, 2010. Johnvechey. [Online] Available at: http://johnvechey.wordpress.com/2012/04/22/valve1/ [Accessed 22 April 2012].
SELF-ASSESSMENT
| Grade | Justification of the grade | PATCH 1: Personality self-assessment and career choice | | | PATCH 2: Learning diary | | | PATCH 3: Case study report | | |
