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  • B Groupno 1 OBHR1502

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    Aswath Chandrasekar
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    Valve is a video game company that uses a flat, horizontal organizational structure with few layers of management between staff and executives. Employees have significant autonomy and input into their work. This structure has strengths like work-life balance but could be a weakness for mass production requiring specialized functions. As Valve considers producing hardware, they may need to transition to a functional structure with departments and clear reporting lines to support large-scale manufacturing operations. Other companies like Vodafone and Idea merged when they faced competitive pressures from new entrants, changing their structure to combine operations and strengthen their market position.

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    Valve is a video game company that uses a flat, horizontal organizational structure with few layers of management between staff and executives. Employees have significant autonomy and input into their work. This structure has strengths like work-life balance but could be a weakness for mass production requiring specialized functions. As Valve considers producing hardware, they may need to transition to a functional structure with departments and clear reporting lines to support large-scale manufacturing operations. Other companies like Vodafone and Idea merged when they faced competitive pressures from new entrants, changing their structure to combine operations and strengthen their market position.

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    11 views7 pages

    B Groupno 1 OBHR1502

    Uploaded by

    Aswath Chandrasekar
    Valve is a video game company that uses a flat, horizontal organizational structure with few layers of management between staff and executives. Employees have significant autonomy and input into their work. This structure has strengths like work-life balance but could be a weakness for mass production requiring specialized functions. As Valve considers producing hardware, they may need to transition to a functional structure with departments and clear reporting lines to support large-scale manufacturing operations. Other companies like Vodafone and Idea merged when they faced competitive pressures from new entrants, changing their structure to combine operations and strengthen their market position.

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    © All Rights Reserved
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    Flag for inappropriate content
    of 7

    Case - Opening the

    Valve: From Software


    to Hardware
    Group-1
    How is Valve's approach to Organizing
    different from a traditional
    organizations?
    • Valve is a clear example of horizontal organization ;
    an organizational structure with only a few layers of
    management .
    • Completely flat hierarchy structure with few or no
    level of middle management between staff &
    executives.
    • Employees are more involved in their work.
    • Decentralized decision making process.
    What are the strengths and weaknesses of
    such an unconventional approach to
    organizing?

    • High decentralization
    • Low formalization
    • No span of control
    • Work life balance
    • No departmentalization
    Should Valve produce hardware?
    • As customer expects a dedicated gaming console which gives
    them an unique gaming experience. So valve must produce
    hardware that is
    • Gaming console
    Can the present system of organizing
    support the hardware business?
    • Valve is following freestyle and a decentralized
    organizing structure.
    • This decentralized structure might not work for a
    mass production venture.
    • Mass production requires an organized structure of
    hierarchy and management.
    • Mass production requires an organized functional
    structure; departmentalizing functions might be a
    good option.
    • Functional structure helps in economizing.
    Suggest an organizational structure for
    Valve's hardware business.
    • Valve must adapt a Functional organizational
    structure.
    Functional structure helps valve in:
    • Grouping according to its purpose
    • Encourage specialization
    • Employees to focus on their on their role
    • Employees report to only one supervisor
    • Employees are learning better with time
    • High productivity
    • More flexible work force and better communication
    Give an example of any other organization which
    been through a major structural change because of
    change in its nature of business
    VODAFONE AND IDEA:
    March 2017, the merger of fierce competitors: Vodafone
    and idea with an estimation of US $23 billion was a
    game changer in the world’s second largest
    Telecommunications Market.

    • This merger was precedent from Jio Infocomm


    Limited (JIO) owned by Mukesh Ambani in Sept
    2016. Jio followed a competitive pricing strategy, i.e.,
    matching the price of the competition which will
    reduce losses and also maintain the existing customer
    base. This had disrupted the Telecommunications
    Industry.

    • Thus, VI came into the market to control the rising


    dominance of Reliance Jio in the Telecom Industry, to The market share of Reliance Jio in
    gain control over price wars initiated by Jio and to terms of total wireless subscribers
    hold a strong position in the industry. stood at 35.54 per cent, Bharti
    • In December 2020, the market share of Vodafone Idea
    Limited in wireless subscriber base across India
    Airtel at 29.83 per cent and
    amounted to approximately 24.64 percent. Vodafone Idea at 24.20 per cent, as
    per TRAI.

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