Integrating General Studies of the Berlitz Company - Report Example

The Structural Frame Paper Berlitz: A Language Organization Noel Diaz Integrating General Studies Joanne Land-Kaslauskas This report describes the selected company, Berlitz, a global language learning organization, using the structural frame perspective and assumptions as highlighted in Bolman & Deal (2008). Bolman & Deal’s six organizational structural assumptions are “organizations exist to achieve established goals and objectives; organizations increase efficiency and enhance performance through specialization and appropriate division of labor; suitable forms of coordination and control ensure that diverse efforts of individuals and units mesh; organizations work best when rationality prevails over personal agendas and extraneous pressures; structures must be designed to fit an organization’s current circumstances”…; “problems arise and performance suffers from structural deficiencies, which can be remedied through analysis and restructuring.” (p. 47). The structural frame perspective (how we view organizational structure options) was developed as a merging from two main theorists – Frederick W. Taylor’s scientific principles and Max Weber’s bureaucratic philosophy. Frederick Taylor’s work was called “scientific management” and was about introducing methods to gain individual worker efficiency rather than workers going by the rule of thumb (p. 48). Taylor measured the individual’s contribution with a stopwatch and pointed out how each worker could maximize their productivity. Max Weber, however, looked at the overall organization rather than the individual worker. He was the theorist behind the hierarchical model and use of the bureaucratic systems. At the time (after World War II), many countries were still using a Patriarch management model and it was time to replace it. To more evenly distribute the power, Weber introduced a “fixed division of labor” and “hierarchy of offices” as examples of the new organizational perspective. These structural frame perspectives continue to exist today. Berlitz International, Inc. believes in the traditional hierarchy of offices and in the traditional chain of command. As discussed in McShane & Von Glinow (2005) coordination comes through formal hierarchy. As the organization grows, which Berlitz has, hierarchical assignments take place and power is passed to individuals. Berlitz reflects a structural perspective on their Internet site, Berlitz Japan, Inc. (2011). The organizational chart lesson (see Appendix A) states that employees will fall somewhere in the chain of command, whether on the top or somewhere “a little lower”. This information falls under the structural assumption that the organization’s current circumstances will dictate the design that fits best. The structural configuration of Berlitz Language Company as stated in Bolman & Deal (2008) started with a simple structure as depicted in most “mom-and-pop” or smaller organizations (p. 78). McShane & Von Glinow (2005) says that “most companies begin with a simple structure” (p. 438). Mintzberg’s Model (Bolman & Deal, 2008, p. 79) is a more accurate configuration of Berlitz International today because of the global magnitude of the organization. The Wall Street Journal published an article following a press release from Berlitz, that Hiromasa Yokoi, vice chairman, chief executive and president would retire and numerous management changes would take place as well as company- wide restructure (Bounds, 2000, March 21). A spokesperson added that the company would be split into two subsidiaries: Berlitz Language Services and ELS Language Centers. Berlitz is 70% owned by Benesse Corp, an educational publisher in Japan. The decision to split the company was a strategic decision and had been planned for “over one year” (Bounds, 2000, March 21, p. 1). Each center, however, will have an individual configuration designed to suit the center director and meet the overall organizational goals. The franchise locations were later given several templates to select from and to model their organizational design along those models. The main point of the structural configuration is to “design a structure that works” and in the case of this language learning company, they have done exactly that (Bolman & Deal, 2008, p. 59). The company has been in business over 130 years and has gone through several major restructures. It is a for-profit business. Thе language school has over 550 Berlitz Language Centers in over 70 countries (Berlitz International, Inc., 2006). There is a U.S. Worldwide Headquarters located in Princeton, New Jersey, but significant influence from Japan exists as the company is primarily owned by Benesse, a Japanese holding group. The cultural impact would also affect the structural configuration resulting in a strong global region-based emphasis – Asia, Africa, U.S., Canada, Japan, Europe, and the UK. The language schools teach a variety of languages such as Italian, Spanish, Chinеsе, Gеrman, and Еnglish. Each center maintains an inventory of materials, including books, CDs, and teaching materials. The schools are in a very competitive еnvironmеnt, where changes are occurring constantly and the future is at best, uncertain. A core processes that is thoroughly integrated and touted by all locations worldwide is the Berlitz Method ® developed by Max Berlitz 125 years ago (Berlitz (UK) LTD, 2003). His methods are built around the “Total Immersion” concept where the student speaks the language that he or she is learning from the first day and is not forced to learn the specifics of the grammar of the language immediately (Berlitz (UK), LTD, 2003, p. 17). The focus is on the spoken word rather than the written word, at least initially. The success of this core process is behind the overall success of the company. This method allows staff to find the right blend of differentiation and integration in not having too much autonomy or being “too loose or too tight” (Bolman & Deal, 2008, p. 75). Key organizational elements as described by Bolman & Deal (2008) are “positions or roles; rules & policies; authority; standard operating procedures (SOPs); planning and control systems; meetings; task forces; coordinating roles; matrix structures; and networks” (p. 52 – 58). Within particular franchise language learning centers the roles and responsibilities will vary depending on the volume and the student needs. Tannenbaum (1995, October 18) discusses the decision Berlitz made to aggressively grow the company through franchise offices. A franchise center may be structured with the teaching staff, teacher trainers, office staff, regional sales manager, and branch manager or center director. Those with the perceived power are those with the most contact with the sales or branch managers. Teachers are perceived as having the least amount of power and are the highest staff in ratio to other staff 3:1, but will also be dormant for long periods of time and then start to be utilized again. The most important stake holder is the student/client. Berlitz (UK) LTD (2003) states that Berlitz’s main customers are corporate with courses focused on the busy professional and their needs worldwide. Their particular market focus is preparing employees to be ready to relocate worldwide on a moments’ notice. Berlitz instructors can go the company location and give instruction on site or the employees can travel to a learning center to receive instruction. To establish roles, power, and structure, the work needs to be differentiated and integrated. There are many concerns to watch for in achieving these proper levels. Without the proper structural frame tasks could fall through the cracks or tasks could overlap and efforts duplicate themselves. Some organizations struggle with staff that is on overload or some that underused. To avoid lack of balance, vertical and lateral coordination needs to take place. Vertical coordination involves top down control as depicted by hierarchical organizational structure (Bolman & Deal, 2008). Lateral coordination is more efficient, but takes much more employee involvement and more face time in meetings and networking. Lateral coordination is more expensive. Berlitz’s worldwide structural frame reflects both vertical and lateral coordination. Parts of the structure are centralized (the local centers and the regional offices) and others are decentralized (corporate and other worldwide headquarters). This is due to the international growth and need for local and regional (cultural) decision making. A Berlitz vision and mission statement found on the Berlitz Canada web site (n.d.) is: “Our Vision - To establish Berlitz Canada as the respected leader in the training industry by consistently offering the highest-quality learning experience. Our Mission - At Berlitz Canada, our mission is to ensure that our clients successfully achieve their personal and business goals - period. Berlitz mission and vision statement reflect the region rather than Berlitz worldwide. There is an emphasis on lateral coordination within Berlitz Canada rather than the vertical coordination pushing the focus on the hierarchy to Benesse (Berlitz International, Inc., 2006). From a structural frame standpoint, Berlitz language learning company follows the assumptions underlying the science and administration of management. The assumption that is very clear within the global company is “forms of coordination and control ensure that diverse efforts of individuals and units mesh” (Bolman & Deal, 2008, p. 47). This is reflected in the success that Berlitz has had in the major restructuring they have done and the franchise growth while at the same time integrating numerous diverse cultures. References Berlitz (UK) LTD. (September, 2003). Human Resources. London, p. 17. Berlitz Canada, Inc. (2010). Vision & Mission. Retrieved March 9, 2011 from http://www.berlitz.ca/en/about.php Berlitz International, Inc. (2006). Berlitz International, Inc., Worldwide Headquarters. Retrieved March 9, 2011 from http://www.berlitz.ae/instruction.php?id=9&mnu=1 Berlitz Japan, Inc. (2011). Organizational Chart. Retrieved March 9, 2011 from http://www.berlitz.co.jp/wm/pr_atwork/04/0426.htm Bolman, L. G. & Deal, T. E. (2008). Reframing organizations: Artistry, choice, and leadership (4th ed.). CA: Jossey-Bass. Bounds, W. (2000, March 21). Berlitz to realign as two divisions; Top officers to exit. Wall Street Journal, p. 1. McShane, S. L. & Von Glinow, M. A. (2005). Organizational Behavior: Emerging Realities for the Workplace Revolution (3rd ed.). NY: McGraw Hill Tannenbaum, J. A. (1995, October 18). Big companies bearing famous names turn to franchising to get even bigger. Wall Street Journal, p. B1. Appendix A – Lesson on Organizational Charts for All Employees ORGANIZATIONAL CHART 組織図 ■Explanation Most companies have a graphic outline of formal corporate structure and authority. This outline is called an organizational chart, or simply an "org chart." It represents a chain-of-command within a company that illustrates areas of responsibility and status. ほとんどの会社には企業の組織と権限をまとめた概略図があります。このような図のことを organizational chart または、短く "org chart" と呼びます。責任の範囲や地位が図で示されていて、企業内の指揮系統が分かるようになっています。 ■Examples 1. The position of CEO, or company President, is at the top of the organizational chart, equaled only by the Board of Directors and, perhaps, the CFO. 2. According to the organizational chart of Elo Electronics, the Sales Manager reports to the Director of Marketing. 3. The organizational chart has been changed as a result of corporate restructuring by our parent company. Now, the New Product Manager is responsible for the Research & Development Department. So, can you locate your position on your companys organizational chart? Is it near the top, or is it a little lower than you prefer? Have a great day! Source: Berlitz Japan, Inc. (2011) Read More