Valve a software company from Bellevue, Washington , USA survives with an organic or flat organisational structure. The company was started by founder/president Gabe Newell who has no managerial responsibility. The flat structure used by Valve has no hierarchy at all but rather all work is undertaken by project teams called Cabals. Workers can become involved and remove themselves from a cabal as they deem necessary but each cabal work with total autonomy from others with one member of the cabal taking a lead role. This lead keeps all the information from their project in their head as a resource to check decisions against. Whilst this structure with its flexibility and freedom has served the company well till now if the company expands they could find that the complete flat structure they currently use may need to be altered. Without a defined management structure and chain of communication knowledge may not be shared amongst cabals, leading to duplication of operations and waisted resources, human resources with certain skill sets can be directed to projects to best suit those skill sets. The hierarchy structure also allows for longer term planning and goals to be set and in turn communicated to the entire workforce.
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