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Organisational configuration

In order to meet the needs of consumers, the firm must organise its activities both internally and externally in order to convert resources into usable products or services.

The way and manner in which a firm organises itself is called organisational configuration, and this comprises of a value chain and the organisational architecture.

A value chain is the sequence of activities or events, including planning, development, production and delivery, through which the firm delivers its products and services.

An image presenting an overview of the value chain. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and services. Support activities include firm infrastructure, human resources, management, technology development, and procurement.

On the other hand, the organisational architecture refers to the firm’s formation, structure or set-up, and the relationship between its different activities. It encompasses levels of hierarchy and reporting relationships, control and reward systems, IT and communication infrastructure etc., that influence or moderate how people exchange information, collaborate and make decisions.

We will discuss value chain and organisational architecture in greater depth in Short Course 3, Week 2.

Your task

Read the Valve employee handbook and discuss the following:

1) What value does Valve create? (Pages 1-3)

2) What are some of the activities Valve undertakes to create value? (Pages 3-4)

3) What are the levels of hierarchy at Valve? (Pages 4-6)

4) How does Valve’s reward system work? (Pages 26-33)

5) What is Valve’s IT and communication infrastructure and what is it used for? (Page viii)

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This article is from the free online course:

Strategy as a Process and Measures of Success: An Introduction

Coventry University