Globalization - Diverse Languages Environment

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resources (Pelled, 1996; Van Knippenberg et al., 2004; Cronin and Weingart, 2007). However, it is challenging in multinational companies to achieve knowledge transfer and sharing because cultural and linguistic differences create barriers for employees to communicate, communication is a channel that employees can share knowledge and information. English language policy may relief this problem because the communication will be more efficient and communication frequency will be increased (Triandis, 1960; Tushman and Nadler, 1978). Moreover, a common language policy can assist to create an environment encouraging employees to transfer and share knowledge (Szulanski, 1996; Cabrera et al., 2006). A Chinese car manufacturing company Geely give a good example of using English to tackle the issue of knowledge transfer and sharing (Li, 2011). For Geely, The main objective of merge with Volvo is to transfer its technology to current car-making system, after finishing the process of merge in 2010, the CEO of Geely began to be aware of the importance of English and regard it as one of the official language, because of this, the speed of technology transfer from Volvo to Geely is faster than original prediction. In conclusion, common company language policy positively influence the knowledge transfer and knowledge sharing within multinational companies.

English-only policy will improve the efficiency of communication and relationship between headquarters and subsidiaries. There is no doubt that multinational companies definitely are multilingual (Luo & Shenkar, 2006), this phenomenon may negatively affect the communication between headquarters and subsidiaries if each speak different language, as a research done by Harzing, Koster and Magner in 2010 indicated that most of the interviewees regarded language difference as a barrier in the interaction between headquarters and subsidiaries, the policy of English-only may overcome barriers occurred in the communication between headquarters and subsidiaries, as English is spoken by 1.75 billion people in the world，which indicates one in every four of people, and English is currently the global language of business (Neeley, 2012). There is no doubt that it is much easier for employees to master English than other languages if English is not their first language, therefore, English-only policy may facilitate both formal reporting and information communication between headquarters and subsidiaries. Such example can be found in Airbus, Daimler-Chrysler, Nokia, Renault, Sam-sung and Microsoft in Beijing, all of them adopt English-only policy to improve communication efficiency across geographical diversities (Neeley, 2012). Furthermore, with a high efficiency of communication between different offices, it may also foster a sense of belonging to a global family (Marschan-Piekkari et al., 1999b), which is beneficial for multinational companies to build a global brand. In conclusion, it is a must for multinational companies to adopt English-only policy in order to facilitate communication between headquarters and subsidiaries.

Disadvantages of English-only policy

English-only policy may create a shadow structure behind formal structure within multinational companies (Marschan-Piekkari, et al., 1999b). As previous analysis of this essay stated that diverse language environment has a negative effect on communication patterns. It will also influence the abilities of headquarters to control subsidiaries. Generally, the formal mechanism is organizational structure, which indicates that the multinational’s division of, and coordination between, functions, processes, individuals and units; and determines the chain of command and formal communication lines (Chandler, 1962). Once the multinational companies use English as the official language, the distance between headquarters and subsidiaries located in some countries with a poor ability of English will be larger and headquarters may lose the ability to control such offices. A research has done focus on Finnish elevator company Kone, this research analyzed a language structure based on offices around the world, and it also revealed the extent of closeness between headquarters and regional offices (Marschan-Piekkari, 1999b). The headquarters used both English and Finnish as the official language, the Finnish and the office from English-speaking countries are close to the headquarters, northern European countries are relatively close to headquarters because employees in there have relatively competent English skill. Unfortunately, Neither German nor Spanish office has limited English skill, they are far from the headquarters, the language distance can also be defined as ‘psychic distance’ (Johanson & Vahlne, 1977) and ‘business distance’ (Luostarinen, 1979). Such long distance may influence the ability of headquarters to control such regional offices and build a global brand. Therefore, English-only policy has a negative influence on the closeness between headquarters and subsidiaries with lower English abilities.

English-only policy may pose a threat on multinational team dynamics within multinational companies. It is common to see that project teams consist of team members from various countries, English-only policy in the workplace has been accepted by a number of multinational companies to overcome language barrier, however, it may come to language asymmetries which are probably a powerful source of geographic subgrouping (Hinds, et al., 2014). This is obvious when there are native English speakers in the multinational teams. Such example can be found in a research done by Hinds, Neeley and Cramton in 2014, the company is a Germany high-tech multinational company which adopted English as common language two years ago, and they interviewed six project teams based in Germany, India and US, all the teams include native English speakers and non-English speakers. And the outcome demonstrated that German speakers thought to speak and write in English was hard and felt embarrassing when speaking English in front of German employees. Non-German speakers also felt unrespect and lonely when German speakers speak German during the meeting. The worst thing is that German speakers usually have meetings exclude English speakers in case of speaking English in the meeting. It can be concluded that English-only policy may create language asymmetries, and the asymmetries accelerate geographically subgrouping and affect team dynamics.

Discussion

Multinational companies should emphasize the importance of English instead of adopting English-only policy. From the analysis of the advantages and disadvantages of English-only policy, it is clear that the disadvantage of English-only policy exceeds its advantage to multinational companies, therefore,