The Human Resource Practices of Performance Management and Recruitment in Valve Company - Case Study Example

Valve Human Resource Management Student’s Name: Subject: Professor: University/Institution: Location: Date: Contents Contents 2 Executive Summary 3 Introduction 4 Recruitment 8 Competency-based Approach 9 References 10 Executive Summary The report examines the human resource practices of performance management and recruitment in Valve Company. The various aspects of performance management of Valve are explored. For instance, the aspect of sustenance of organisational values such as concern for persons and offering of an equal opportunity to all individuals is discussed. In addition, the aspect of encouraging behaviour that is discretionary among organisation members is discussed. Further, the aspect of performance management as a flexible and ongoing process that involves managers and those working under them co-operating as partners is discussed. Also, it examines 360-degree feedback model of performance management in Valve context. The recruitment human resource practice of Valve is also discussed in the report in terms of how the company attracts and its job specification. In addition, the competency-based approach of recruitment within Valve is discussed. Finally, recommendations and a conclusion are made in light of the report. Introduction The report delves into human resource practices of performance management and recruitment in Valve. It examines 360-degree feedback model of performance management and the competency-based approach of recruitment within the Valve Company context. Performance management Performance management entails the methodical process of enhancing results at individual as well as at team level (Price 2011). It involves the translation of advocated values into values being utilized by an organisation. It is also concerned with the sustenance of organisational values such as concern for persons and offering of an equal opportunity to all individuals (Armstrong & Taylor 2014). Valve has an organisation structure that is nearly entirely flat due to the founders’ strong belief of creating an environment that is conducive as well as capable of enhancing innovation and productivity (Silverman & Linebaugh 2012). The implication is that there is no hierarchy at Valve; every organisation member is a manager and is not a designated to supervise or manage anybody. Therefore, Valve has a dissimilar organisational structure as compared to other gaming companies that have a hierarchical company structure such as Zynga. The rise to a management role in a particular project by a person is reliant on specific skills required in a specific project. In addition, persons usually acquire wide knowledge in other areas that are not their domain of specialisation as a result of the unique organisation environment at Valve (Silverman & Linebaugh 2012). The implication is that persons can initiate and even lead a project in an area that is not within their career specialisation. Consequently, persons have an equal opportunity to rise to management roles in diverse projects depending on their skills and the project’s skill requirement. Ulrich (2013) postulates that performance management is a flexible and ongoing process that involves managers and those working under them co-operating as partners. However, the collaboration has to be in a structure that lays down the best mechanism of their working together in attaining optimal outcomes. Valve encourages its employees to partner to jointly work in a co-operative way so as to add value to stakeholders. The entire company is configured around the idea of organisation members being able to work together in decision-making within highly creative as well as technical spaces. Further, the initiation of any project is enriched by a wide consultation afforded by Valve’s company structure (Silverman & Linebaugh 2012). For instance, the company’s physical office space is designed in such a way that desks are fitted with wheels to facilitate employees moving to where they deem to be more valuable. The employees are capable of moving their desk as they wish and at any point in time to be with those they consider helping them create more value to the company (Goodall 2014). Guest (2011) stipulates that performance management encourages a behaviour that is discretionary among organisation members. For instance, organisation members can influence the amount of work to execute and the duration of performing a task that results to more productivity and innovation in the organisation. According to Goodall (2014), Valve offers its employees the freedom of choosing the work they want to perform as well as the manner wish to execute their work. Organisation members spend 100% of their time on self-initiated projects that they consider to be creating optimal value to Valve and its clients. However, Valve provides questions that act as a guideline to its employees. The questions are intended to guide employees in deciding projects that create optimal value to Valve and its clients as well as leverage their skills and strengths. On the other hand, in other gaming companies such as Zynga, managers influence the type and means of job execution. Performance Review Performance management being an ongoing process needs to be reviewed once or even twice on an annual basis (Price 2011). Performance review entails the assessing, measurement and giving of feedback on performance. It can be informal or formal. Valve reviews the performance of its employees through peer reviews. Peer reviews are conducted so as to aid employees in offering each other feedback that is capable of helping them to grow at individual level. Formal peer reviews take place once in every year. However, informal peer review also takes place as Valve employees are usually expected to be offering feedback to each other throughout the year whenever need arises. 360-degree Feedback Hendry (2012) describes 360-degree feedback as a methodical collection of data on feedback pertinent to performance of employees from their stakeholders such as their peers. The 360-degree feedback methodology entails use of a questionnaire in obtaining data on employees based on a number of competencies that are set from the organisation or offered by the questionnaire supplier. The questionnaire might widely refer to headings such as how employees approach work, leadership and management skills of employees. In addition, the 360-degree methodology entails the rating of employees on each heading on a set scale (Armstrong & Taylor 2014). Further, the 360-degree methodology involves the processing of the collected data on performance. Feedback is then made anonymous and disseminated to those reviewed. Also, action is taken depending on the motive of the process such as pay or individual development. Valve has a structure for employees to give feedback to each other in peer review. A set of employees whose membership changes from one period to another are responsible for interviewing organisational members on the person they have worked with, as well as, the accompanying experience of working with the person. The four headings on which Valve employees’ base their feedback include; Product Contribution, Productivity and Output, Skill Level and Technical Ability and Group Contribution. Product Contribution refers to a person who is a product visionary or play tester, or even a bug finder. Group Contribution refers to activities such as recruitment that contribute to the ultimate growth of an organisation. Productivity and Output calibrates the amount of shippable content out of Valve attributable to a particular employee. Skill Level and Technical Ability comprises of the value of problems that an organisation member can potentially solve. The feedback data on performance collected is made anonymous and then delivered to those who were reviewed for purposes of individual improvement. In addition, stack ranking entails peer evaluation by employees whereby an employee ranks co-workers based on the four headings on which Valve employees’ base their peer review feedback. The stack ranking is then linked to employee compensation. The implication is that employees are remunerated based on their value contribution to the organisation determined by their fellow employees’ feedback on performance. Recruitment Recruitment can be described as a process of drawing qualified individuals to apply for organisational jobs in a timely manner by an organisation (Torrington 2013). Recruitment arises when there is a vacancy in the organisation due to an organisation growing or even the exit of an employee. Recruitment can be through external agencies such as through referrals or by the organisation’s human resource department. Valve has a unique recruitment practice of hiring the right individuals that it prioritises. The company does not have a human resource department due to its flat company structure unlike Zynga that has a human resource department. The company encourages organisational members to request their allies to join the organisation. The argument propagated by Valve is that an employee who likes the company has friends who are likely to fit well into Valve. Therefore, Valve has confidence of employees referring the appropriate candidates for possible employment. Torrington (2013) argues that job specifications are used in outlining the ideal candidate required by an organisation for an open position. In addition, the job specification enables prospective employees to be aware of job aspects before deciding to apply for the job. Job specifications are comprised of desired technical competencies, behavioural and attitudinal needs, qualifications, training, and meeting of the expectations of the client. Valve centres on recruiting persons who are extremely co-operative. In addition, the individuals have to be capable of solving difficult problems as well as communicate to co-workers in the process. Further, they have to be reactive, resourceful, iterative, chatty as well as creative. Competency-based Approach The structure involves technological or even job-oriented competencies that persons are required to execute so as to attain needed job results. Also, it is inclusive of behavioural competencies that comprise of personal traits, as well as, conduct essential for performing excellently in domains of interpersonal skills, team membership and communication skills, self-drive, and leadership (Armstrong & Taylor 2014). Valve utilises its recruitment process to eliminate individuals who do not fit the organisation and those who are underperformers. For instance, Valve has offered its employees questions that help to guide them in searching for the ideal potential employee. The questions are focused on aiding a current Valve employee in determining the leadership ability and prospective value addition of a Valve candidate. Recommendation Valve’s inventive company design is worthy of imitation by other gaming companies that are operating in the domain that necessitates high creativity. In addition, for the nearly entirely structure to be effective, organisations that wish to imitate Valve need to change their hiring processes to replicate Valve’s success. Conclusion The flat organisational structure, recruitment and performance management human resource practices of Valve are efficient because they augment innovation and inventiveness among its employees. References Armstrong, M, & Taylor, S, :2014, Armstrong's handbook of human resource management practice, Kogan Page Publishers. Guest, D, E, :2011, Human resource management and performance: still searching for some answers. Human Resource Management Journal, vol. 21, no. 1, p.3-13. Ulrich, D, :2013, Human resource champions: The next agenda for adding value and delivering results, Harvard Business Press. Price, A, :2011, Human resource management, Cengage Learning. Hendry, C, :2012, Human Resource Management, Routledge. Torrington, D, :2013, Managing to Manage: The Essential Guide to People Management, Kogan Page Publishers. Silverman, R, E, & Linebaugh, K, :2012, Who’s the Boss? There Isn’t One.Wall Street Journal. Goodall, J, :2014, Lasting change is a series of compromises, And compromise is all right, as long your values don’t change. [VALVE] Valve Software. Handbook for New Employees. http://www. valvesoftware.com/company/Valve_Handbook_LowRes. pdf.,(accessed October 10, 2014).  Read More