Question

discuss how hierarchy (control of information, people and decisions) differs in a bureaucratic organization and at Valve Corporation. Specifically, explain how authority is gained (and lost) in a bureaucracy and at Valve, and how important decisions are made. Finally (and this is very important), reach a conclusion about whether Valve's structure is more or less beneficial to workers than is a traditional bureaucratic organization, and then support your position.

Answer 1

Answer: Weber defines bureaucracy as a type of power sufficient for the effective functionality of organizational structures. The main feature lies rationality from the point of view of the activities performed in the organization. In bureaucracy, leadership is through impersonal rules written in a hierarchical structure. In this structure normally people gain power demonstrating work abilities, and lose power if this is not working anymore.

Valve Corporation has a flat organization, that eliminates as many middle management positions as possible to put executives in direct contact with employees on the floor. This approach can work well in a small business with a limited number of employees, where it is possible for executives to oversee operations. In larger companies, you may need to include some intermediary for functionality.

The results in Valve Corporation are very good for the workers, is maybe a good possibility for other companies.