Earlier this week, Valve’s 56-page employee
handbook leaked onto the internet. You can read it here. The
handbook is given to new employees on their first day, and outlines the company’s
basic business model, which is far from normal.
The handbook outlines the
company’s command structure, which is decidedly unique. The handbook states “…we
don’t have any management, and nobody ‘reports to’ anybody else. We do have a
founder/president, but even he isn’t your manager. This company is yours to steer—toward
opportunities and away from risks. You have the power to green-light projects.
You have the power to ship products.”
This unique way of doing things
has been met with skepticism in the business community. David Herrmann,
business operations professor at Utah State University, said that while
software companies are known for doing things a little differently, he believes
that, “Somewhere there’s gotta be some central people.”
In addition to employees being
able to begin or end projects ad nauseam, salaries are based on co-workers’
ratings of each other’s performance. The handbook said “Over time, compensation
gets adjusted to fit an employee’s internal peer-driven valuation. That’s what
we mean by ‘correct’—paying someone what they’re worth (as best we can tell
using the opinions of peers).”
“I agree with the principle,”
Herrmann said, “within some bounds. For example, how does an engineer determine
the worth of a marketer? I do something similar in my class with group
projects. You will get two sides, where everyone is so nice in their reviews it’s
ridiculous, or they all did a great job, but they hammer on each other. Then it’s
like, ‘so, who did the work then?’ I don’t see it working on a large scale.”
Cassandra Sherwood, a graphics
design student at USU, said she was unsure if she would want to work under a
system like that.
“If everyone liked me it would
be great,” Sherwood said. “But imagine how bad office politics would be if
promotions and salaries aren’t just in the hands of your boss, but your
co-workers as well. If you disagree with someone, or make a mistake, that could
have a real impact on your salary. I’m not sure I would want that.”