Strategic Management Concept

Running head: STRATEGIC MANAGEMENT CONCEPT
STRATEGIC MANAGEMENT CONCEPT
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1STRATEGIC MANAGEMENT CONCEPT
1.0 Introduction
The Valve corporations are based in Washington and it is known for its award winning
games like Half Life, Team Fortress and Portal games. These games are extremely popular
throughout the globe. The company employs a unique management structure with little formal
hierarchy. The company has a totally flat hierarchy structure, the CEO and the senior executives
of the company do not interfere in the daily operations of the organization. The internal project
groups of the company are known as “cabals”, which is made spontaneously by employees and
established a common goal (Schermerhorn et al., 2011). However, there are issues faced by the
management including cumbersome internal process as the team members of the company
grows. Without managers and supervisors the productivity of the company had suffered and it
faced issues in communication. There are major problems with the unfair and unskilled
formation of groups.
2.0 Management Issue Discussion
Valve is a sample organization which implements unique methods for operating the
business. The employees of the business organization are highly independent, they have no
customary chiefs and the employees are free to take direct obligations while picking their own
projects and completing the projects in a proficient manner (Schermerhorn et al., 2011).
However, one of the main issues that are faced by the business organization is self organization
through self selection as well as the issue of information communication problems and informal
leadership issues. These are some of the main problems that can be faced by the business
organization to move forward with an organic business structure. There are issues and problems

2STRATEGIC MANAGEMENT CONCEPT
with unfair and unskilled formation of groups and committees within the business organization.
This can also be considered as one of the major problems faced by the business organization.
This has taken place as there are no authority figures in the organization who assigns the tasks to
the particular groups and teams. The employees of the organization are extremely independent
which can also lead to conflicts and disagreements in the organization. According to the Valve
Handbook, 2012, “A fearless adventure in knowing what to do when no one’s telling you what to
do.” There are other organizations as well that follows a flat structure such as Nike, the
innovative footwear company. It uses the flat structure to maximize the transparency and agility
among its employees (Schermerhorn et al., 2011). There have minimized the bureaucracy and
encourage employees to undertake new ideas. The company also faces issues and challenges in
respect to the structure such as barriers to communication, it creates confusion and slow things
down. The company also faces complex situations and faces difficulties to keep up with the
changes in the external business environment.
3.0 Critical Discussion
Theory 1: Autocratic style of leadership
According to Rast III et al., (2013), autocratic style of leadership is also known as
Authoritarian style of leadership. It follows a high rigid rules and procedures. The policies and
the procedures of the business organization are highly consistent and this can lead to the success
of the business organization. However, as mentioned by De Hoogh et al., (2015), in this
leadership style there is little scope and opportunity for creativity and innovation. The
implementation of new processes and independent thinking process is not considered among the
top priority by the leaders and the senior executives of the business organization. It is believed