Case Summary
Valve Software an organization which has a workforce of more round 300 employees around the globe has no clear management structure in place. The organization uses traditional leadership approach where the rule of thumb applies. The managers have the final say when it comes to decisions facing the organization. As a result in recent months, the company is losing most of it employees to its main competitors due to poor leadership structure. The employees have been complaining of lack of support from their leaders when it comes to solving various problems that are facing the organization. Their input when it comes to solving problems is not taken seriously. Innovation levels and teamwork culture in the organization is on the decline in the recent months. Two weeks ago there was a strike among employees who were complaining about poor treatment by the organization management as well poor remuneration. Instead of responding to the needs of the workers the managers called in police to force workers back to work. This has created the crisis within the organization as moral among employees is very low.

The challenges that are faced by the organization can be easily resolved using situational leadership approach. The leadership has a problem of evaluating the needs of the employees when it comes to resolving the problems facing the organization and leaders are in particular situation required to evaluate their needs of the employees in order to determine their levels of commitment when it comes to various tasks (Northouse, 2009; pp. 99). Situational leadership usually demands that leaders op to match their leadership styles with the commitment and the competence of their employees ( Northouse, 2009; pp. 99). In the case of Valve Software fails to take into consideration the commitment of employees when employing the rule of thumb leadership style in various management decisions. The organization lacks effective leaders given that effective leaders tends to recognize the needs that their subordinates have and tend to adopt their style of leadership to meet those needs (Northouse, 2009; pp. 100). In this case, the organization management op to be delegating work given that employees are more concern by lack of them being involved in resolving problems facing the organization (Northouse, 2009; pp. 101).
Another problem that management of the organization has is that it lacks to identify the developmental levels that the employees of the organization have in order to adopt their style according those levels (Northouse, 2009; pp. 103). Most of the employees in the organization are highly committed and at the same time very competent and this makes them to be in level D4 of development (Northouse, 2009; pp. 102). The management op to adopt it style of leadership according to the competence level of its employees rather than what the management feels is right (Northouse, 2009; pp. 103). The current employee crisis in the organization arises due to lack of proper identification of employees competency in order to group them according to their development levels ( Northouse, 2009; pp. 103).
The problems facing the organization can be resolved through situational leadership whereby the management adopt leadership styles to applied according to the needs of the employees (Northouse, 2009; 99). The organization also needs to ensure that the employees are involved in the process of running the organization by delegating duties to them so that they can feel that they are part of the organization (Northouse, 2009; pp. 100). Finally, the levels of employee development is another crucial factor that needs to be taken into consideration when resolving the employees crisis in the organization ( Northouse, 2009; pp. 103).


  1. Northouse (2009). Leadership: Theory and Practice.SAGE Publications, Inc; Fifth Edition edition; (pp. 99-103)
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