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Valve Corporation Motivation and Leadership

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Please read the Valve case study. The case study provides an overview of the "management model" at Valve, a highly successful gaming company. As you will see, it is an unorthodox model characterized by having no "managers" and giving employees enormous freedom in choosing what projects to work on.

1. Which forms of motivation does Valve emphasise? Please provide some examples. (Maximum word count: 200 words)

2. What is likely to happen to Valve's management model as the company grows? Please provide some examples. (Maximum word count: 200 words)

3. Using the language of this course, how would you describe the way decisions are made in Valve? Please provide some examples. (Maximum word count: 100 words)

4. Using the language of this course, how would you describe the way activities are coordinated in Valve? Please provide some examples. (Maximum word count: 100 words)

5. a) Do you think Valve's unusual model provides useful insights for a large software company like Microsoft, in terms of how it should be managed? And
b) how might a company like Microsoft make use of these insights? (Maximum word count: 200 words)

6. What are the biggest strengths of Valve's approach to coordination? (Maximum word count: 200 words)

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The solution provides guidance on how Valve Corporation business model is unique and encourages employee motivation and provides the company a stronger leadership.

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Guidance on Valve case study
1. Which forms of motivation does Valve emphasise? Please provide some examples. (Maximum word count: 200 words)
Valve emphasizes on intrinsic motivation wherein the employees are given freedom to choose their own jobs which interests them and bring laurels and value to the company. The employees are motivated by the need for achievement wherein each employee wants to get associated with a project where they get recognition and have the freedom to develop their own projects and therefore, creating an opportunity for them to become a leader. The Valve Corporation has a belief in the self-determination theory which explains that the employees feel motivated when they have more control over their actions and in absence of which the job is an obligation (Robbins and Judge, 2013). Therefore, the Self-determination theory promotes more autonomy for employees which shall create a desire within them to excel. Although company also provides bonuses for top performers and rewards above industry standards which are sources of extrinsic motivation but the intrinsic motivation system of freedom of choice of work is stronger than the extrinsic rewards system. Valve Corporation is a unique example of such motivation. Google is considered the benchmark in the industry for motivating its employees with freedom of choice of work to its employees along with lucrative extrinsic benefits (Martin, 2014: Sept. 25).

2. What is likely to happen to Valve's management model as the company grows? Please provide some examples. (Maximum word count: 200 words)

As per the case study, Valve Corporation has no formal authority responsibility structure of the organization and every employee can choose the project he or she wishes to associate with and even create new ideas and develop ownership for this project. According to ...

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Himanshu Mahobia, MBA
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  • MBA, M.D.S University, Ajmer
  • PhD, Suresh Gyan Vihar University, Jaipur
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