Language and Globalization: “Englishnization” at Rakuten (A) – Case Solution

2.5. Art of Communication

According to research conducted at a French organization, employees whose native language was not English experienced a status loss in their authority if they had to speak in English. No matter how fluent some people are in English, they believe they will never be as sophisticated, as influential, or as articulate as they were in their native language (Girard, 2012).

Many employees at Rakuten were facing the same situation. They were experiencing communication loss with their colleagues, even in email conversations. Having good TOEIC scores did not guarantee that they could speak fluent oral English.

English as a language has fewer power barriers, whereas Japanese is hierarchy-driven. There is a power dynamic in the Japanese language that is very apparent (Neeley, 2013a). Therefore, a sentence in Japanese could be interpreted very differently from the English equivalent, which made conversations between the employees harder with their seniors and subordinates alike.

2.6. Age Dilemma

While younger employees embraced “Englishnization,” senior employees were more reluctant. Younger people are more open to changes because of a nurturing environment, simplified input, educational opportunities, cooperative peers, and other supporting aspects of a social context that facilitate the acquisition of any language (Birdsong, 2006).

The seniors had an adamant mindset that no matter how hard they tried, they would never be able to learn English.

Even though they were specialists in their domains, they felt demotivated and inferior because of the same reasons. Moreover, they were not able to articulate their opinions during meetings, hence leading to the communication barrier.

2.7. Employee Resistance and Reluctance

It was estimated that two-thirds of the employees struggled with the idea of “Englishnization.” According to the facts, Japan’s 2009 Test of English as a Foreign Language (TOEFL) scores were the second worst in East Asia, below both North Korea and Myanmar (Neeley, 2013a).

Many of the employees were allergic to English. Hence, they were reluctant and felt frustrated when they had to study English. Others felt hesitant, shy, and humiliated since they were afraid that they wouldn’t be 100 percent grammatically correct.

3.   Why is “Englishnization” required for an organization?

“Englishnization” was done as a Lingua Franca at Rakuten, which could be defined as a common language incorporated aiming toward global expansion and increasing competitiveness (Alley-Young, 2015; Mulken & Hendriks,2015).

A Lingua Franca enables the organization to improve its communication across the border and allow engagement in foreign markets (Mulken & Hendriks, 2015; Peltokorpi, 2015).

In this case, English was chosen as the Lingua Franca as it plays a principal role in today’s business world and is considered to be an acceptable passport to better education and job opportunities.

The global perspective of employability is no longer restricted to just skills, knowledge, and abilities but a strong need for the potential transfer of information in English (Ahmad, 2016).

It is evidently observed that the responsibilities of English as lingua franca in the global economy with countries having English as an official language have an advantage over the countries that do not (Hejazi & Ma, 2011).

4.   Impact of “Englishnization” – SWOT Analysis

5. EVALUATIONS

5.1. Continuation of “Englishnization”

5.1.1.   Short-term Effects

The enforcement of the English language brought strong aversion from the employees, and the effects of the same have been analyzed above. The continuation of the policy in the same format may result in employees leaving the organization due to negativity building up within the organization.

Despite retaining employees who may master the language, the organization might lose out on employees with better technical skills and expertise.

5.1.2 Long-term Effects

With the ongoing scale of implementation of “Englishnization,” Rakuten could see various long-term benefits such as improvement in communication,  integration of global subsidiaries, acceleration of global expansion, and increased accessible information.

Furthermore, a common language across the organization can be used for the communication of information among global partners. The information, such as sales projections, budgets, and targets, need not be translated to English from Japanese when it needs to be shared.

Ashforth and Mael (2018) mention that once fluency matures over a period of time, there is scope to build social relationships through informal communication, developing loyalty, and shared values.

5.1.3. Conclusion

While the ongoing policy has impressive long-term benefits, the short-term effects cannot be neglected. If Rakuten loses its best employees due to the policy, the organization’s efficiency may be affected immediately.

5.2. Discontinuation of “Englishnization”

5.2.1 Short-term Effects

The discontinuation of the policy may unburden the employees, and their entire efforts can be put towards their work again. Despite the efficiency of the organization increasing this way, Rakuten would be restricted only to its domestic market once again and would have to rely on translators and expatriates with English skills to facilitate cross-border communication.

While the employees will save on the expenses incurred for English classes, Rakuten will have to bear the costs of translators. Furthermore, translators without technical skills might miss out on important points which might be lost in translation.

5.2.2.  Long-term Effects

Without English language skills, Rakuten’s dependency on translators and native English speakers will keep on increasing. This dependency ultimately shifts the power to the employees competent in English, irrespective of their knowledge and experience.

In the case of global expansion and acquiring a subsidiary overseas, there may be a lack of free-flowing communication, which could limit the amount of information that is being shared.

5.2.3. Conclusion

While the discontinuation of the policy relieves the employees temporarily, it affects the long-term organizational goals. Furthermore, discontinuation is not ideal as the organization has invested heavily in the policy with their time.

6. Evaluation Outcome – Modification of “Englishnization”

While evaluating the possible solutions of continuing and discontinuing the policy, it is evident that the English language is a necessity in the long term but is burdening the employees at present. The best solution at this juncture could be a modification to the existing policy in a way that the organization benefits in the long term and the employees are satisfied in the short term.

With the challenges faced by the employees analyzed, we now provide possible solutions to modify the policy, thereby solving the problems to an extent in a way that benefits both the organization and the employees.

6.1  Problem 1 – Time Constraint

It can be seen that Rakuten employees found it strenuous to keep pace with their time to study English and their work responsibilities.

Consequently, working under pressure to meet deadlines not only lowered the morale of the employees but also declined their performance level. This can be addressed by extending the deadline and helping employees find time in their busy schedules to learn English.

6.1.1. Benefits:

When a time limit is not a concern, employees feel less burdened and put in more effort to prepare for the TOEIC test. They also develop a positive attitude toward learning. This will also increase employee engagement.

6.1.2. Risks:

On the other hand, while an extended deadline can help people, it can also make them apathetic towards their approach to the learning process.

6.1.3. Implementation:

To accommodate English study in their everyday work schedule with the help of HR planning and monitoring.

6.2 Problem 2 – No proper guidance

Given that the employees at Rakuten had to pay for their own English lessons, they did not receive proper guidance or support from their managers. The company could issue financial support, including incentives and bonuses for employees who obtain good TOEIC scores.

Also, employees can be categorized based on their learning abilities or their job role, and a structured study program can be provided to guide them efficiently.

6.2.1. Benefits:

While demoting an employee may be seen as a way to have a serious outlook on the concept of “Englishnization,” it certainly creates a negative impact on the minds of employees to respond to the sudden change. Therefore, financial support from the organization is essential to motivate employees and give them a boost to work harder. In other words, a consistent performer may look forward to incentives, bonuses, promotions, or international work exposure.

6.2.2. Risks:

The approach may be time-consuming; however, it will help the company in the long term.

6.2.3. Implementation:

The high scorers of TOEIC can be surprised with an incentive. This would greatly help in boosting the confidence of underachievers.

6.3 Problem 3 – Productivity

As identified above, it takes almost double the time to convey something in English, be it an email or an expression of an idea. Many native Japanese employees were unable to articulate their thoughts and propositions since they were asked to do so in English. Double the time meant double the cost to function as projects were delayed.

In scenarios where time is crucial, translators can be introduced to help employees. However, an online platform can be introduced where employees can learn the language while they are on the go.

6.3.1. Benefits:

Translators can help save time, increase productivity, and reduce project delay costs for the organization. Since many Rakuten employees are coping with the English language, misconceptions and confusion can be avoided.

6.3.2. Risks:

This approach will enhance operations for the company, but native Japanese employees will still struggle to learn the language, which is the sole purpose of “Englishnization.”

6.3.3. Implementation:

Initial costs can be high, but the investment for translators can help only in the short term. Employees can benefit from the e-learning platforms in the long run with an easy user interface.

6.4 Problem 4 – Relevance

It is true that certain employees, such as salespeople at Rakuten who communicate with local Japanese clients, are not required to speak English. However, learning English is like adapting to a particular culture, and everyone needs to be a part of it.

It would not be advisable to have two different cultures within the organization. It is important to make employees aware of globalization and the motive behind “Englishnization.”

6.4.1. Benefits:

When an organization wants to go global, no matter whether employees interact internationally or locally, they need to understand the value of English and participate in the learning process. This will help employees have the same point of view, attitude, and belief.

6.4.2. Risks:

While “Englishnization” has been given so much significance, some employees, particularly salespeople who are very capable and sincere, may not have the time to study the language due to their busy schedules. As a result, they will not be able to excel in their work and face penalties.

6.4.3. Implementation:

A lower TOEIC requirement can be introduced for the employees interacting within the domestic market. The addition of incentives for these employees as well will help keep them motivated toward achieving the requirements.

6.5 Problem 5 – Art of communication

Not to mention, the TOEIC test is a good way to measure an employee’s performance in English but, it does not ensure their ability to proficiently converse on a day-to-day basis.

This can be improved by having a few native English-speaking employees who will assist and communicate with Japanese employees in English every day in the hope that ideas, thoughts, and opinions are exchanged only in English. Communication should be given importance during the assessment.

6.5.1. Benefits:

Inevitably, it will be easy for Japanese employees to learn the language as they will use it daily, where native English speakers can help with English pronunciation, correct grammatical errors, and clarify the doubts of employees whenever required.

6.5.2. Risks:

The native English-speaking employees may find this to be a waste of their time, and practice sessions may be time-consuming between busy schedules.

6.5.3. Implementation:

With the help of senior-level managers and HR planning, English-speaking group activities can be conducted so that employees start feeling confident with their communication skills.

7.  Recommendation – Feedback Loop

In terms of implementing the policy of “Englishnization,” Mikitani was already a few steps ahead in analyzing how this would benefit the organization. However, he did not consider the fact that there were 7100 employees who had to adapt to this change in culture.

Mikitani, as the CEO, made the decision overnight without consulting any of the managers in the senior position or his employees. Kuye and Sulaimon (2011) have mentioned that the involvement of employees in the decision-making process is proportional to the performance of the organization as a whole.

General awareness should have been created among the employees about the globalization of the firm and how English is the gateway into the global economy. Feedback from the employees at Rakuten would have helped formulate the policy better in a way that is positively accepted by the majority of the people.

8.  Conclusion

From the above analysis and evaluation, it is safe to say that modifications to the “Englishnization” policy can help Mikitani resolve internal conflicts and attain his goal for Rakuten to become a global giant. It is critical for any international organization to devise a good language strategy to defeat cultural barriers and ensure efficient overseas operations (Kim Girard, 2012).

If Mikitani could implement the above-defined recommendations, he can ensure a positive outlook from employees, which in turn will lead Rakuten to be a leading example in the history of Japan.