International Business Db Coursework Example

International Business
Student’s Name
Institution 
Abstract
The business world today has seen a transformation in the way it is conducted. The advancement in technology has ensured that transference of material raw resources and skilled expertise is efficiently done from one part of the world to another. As such, organizations have spread their reach beyond the confines of the parent company’s geographical location. This has led to the evolution of stateless corporations. In this regard, management of the organization affairs has intensified in both demand and complexity calling for more ingenious means of structuring them to minimize the negative effects associated with global management. As a solution of this, different organization structures have been fronted in relation to international business with each having its own merits and demerits. This paper focuses on the matrix organization structure exploring its positivity and its negative ends. As a system, it involves a grouping of individuals by division and function simultaneously.
Keywords: global, stateless corporation, matrix structure, organization, policies, division 
Global business is one that undertakes business activities across the world. These business activities can be dated to ancient times in history (Daft& Lane, 2007). As such, this has resulted in the development of stateless corporation sourcing work in the most efficient region. The Royal Dutch Group of Companies (Shell) is one such example. Given it global scope and wide reach, Shell uses the matrix organization structure.

This is an organizational structure that is integrated, and as such there are super-impositions on each division in more than one dimension. Simply stated, People are grouped by function and specific divisions simultaneously (Daft& Lane, 2007). Like a majority of business aspects, the matrix structure has both positive elements and negative elements.
Advantages
In this structure, communication between departments is enhanced as there are effective communication channels aimed at quick decision making. This is a factor that eventually leads to collaborative efforts in development and execution of organizational strategies. For Shell, this is seen in the efforts of divisional CEOs acting independently but in full accountability to the executive authority. In addition, since the structure incorporates democratic leadership, there is usually an associated increase in levels of employee motivation (Daft& Lane, 2007). This is because this kind of leadership encourages platforms for members to share before the management makes decisions. Again, the independence experienced improves a division’s ability to acquire necessary resources. This is because there are faster-decentralized decisions and as such time that would otherwise be lost in lengthy bureaucratic procedures is saved.
Disadvantages
On the other hand, the cross-functional nature of the matrix organization does not clearly define lines of authority. This is because the relationship between the subordinates and their superiors is not clear enough. This conflict is intensified when a team member receives divergent directions from both functional and team managers (Daft& Lane, 2007). Eventually, this leads to inefficiencies brought about by the reception of conflicting policies. Such a situation results in inefficient management. As such, the organization fails to reap the benefits of both structural stability and the routinization of functionalities. This in itself affects not only the corporate structure but also the human resource. The infighting and fluctuations in the structure lead to psychological stress whose eventual end is negatively impacting personal and team stability.
References
Daft, R. L., & Lane, P. G. (2007). Understanding the theory and design of organizations. Mason: Thomson South-Western.