Mark Scheme

Human Resource Development II – Level 6.

Unit title

Human Resource Management A Contemporary Approach 7th edition.

Textbook Beardwell & Thompson.

Series March 2019.

 Marking grid – referred to in individual questions below (Level 5)

Excellent knowledge base that supports analysis, evaluation and problem-solving in theory and practice of
4 marks A - Distinction 70+% discipline with considerable originality and autonomy. Excellent use of terminology. The response is thorough and
clear with balance of breadth and depth.
Good knowledge base that supports analysis, evaluation and problem-solving in theory and practice of discipline
3 marks B - Credit 60-69% with some originality, detail and autonomy. Structure will generally be good with appropriate use of terminology
and response exhibits both breadth and depth.
Satisfactory knowledge base that supports some analysis, evaluation and problem-solving in theory and practice
2 marks C - Pass 50-59% of discipline. There may be an attempt at structure and use of appropriate terminology and response will exhibit
some breadth and depth.
Basic knowledge base with some omissions at the level of theoretical issues. Restricted ability to discuss theory
1 mark D - Pass 40-49%
and/or or solve problems in discipline. Response may lack clarity though show some breadth or depth of analysis.
Limited knowledge base. Limited understanding of discipline. Difficulty with theory and problem solving in
0 marks F - Fail 39 -%
discipline. Response may be muddled or too short.

Annotate throughout paper:

To indicate that the candidate has written something that is creditworthy
NAQ Not answering the question set
BOD Benefit of the doubt
NBOD No benefit of the doubt
^ An omission or incomplete answer to the question set

To indicate that a candidate has made a positive evaluation/strength in response to the demands of the question
To indicate that the candidate has made a negative evaluation/weakness in response to the demands of the question

Question 1 Answer Annotate Guidance

You want to increase the budget for training and Example answers – accept other relevant points – any Some points may be split Syllabus reference:
 Question 1 Answer Annotate Guidance

development.
Write a report analysing five benefits to the
organisation of a robust T&D programme.
[4 marks each]
five of the following - max 4 marks each. or complied differently to Beardwell &
a) Improved employee performance – Employees on the left – accept any 5 Thompson, Ch 7
who receive the necessary training are better main points provided Learning and
able to perform in their jobs. Training gives they demonstrate sound development, esp
employees a greater understanding of their knowledge. pp218-219.
responsibilities within their role, and in turn
builds their confidence. This confidence
enhances their overall performance, and this
can only benefit the company. Employees who
are competent and on top of changing industry
standards help your company hold a position
as a leader and strong competitor within the
industry.

b) Improved employee satisfaction and morale.

Lower labour turnover – the investment in
training that a company makes shows
employees that they are valued. The training
creates a supportive workplace. Employees
may gain access to training they wouldn’t have
otherwise known about or sought out
themselves. Employees who feel appreciated
and challenged through training opportunities
feel more satisfaction toward their jobs. Staff
are more likely to feel valued if they are
invested in and therefore, less likely to change
employers. Training and development are an
additional company benefit. Recruitment costs
therefore go down due to staff retention.

c) Addressing weaknesses – Most employees will

have some weaknesses in their workplace
skills. A training program allows you to
strengthen those skills that each employee
needs to improve. A development program
Question 1 Answer Annotate Guidance

brings all employees to a higher level, so they

all have similar skills and knowledge. This helps
reduce any weak links within the company
who rely heavily on others to complete basic
work tasks. Providing the necessary training
creates an overall knowledgeable staff with
employees who can take over for one another
as needed, work on teams or work
independently without constant help and
supervision from others.

d) Consistency – A robust training and

development program ensures that employees
have consistent experience and background
knowledge. The consistency is particularly
relevant for the company’s basic policies and
procedures. All employees need to be aware of
the expectations and procedures within the
company. Increased efficiencies in processes
results in financial gain for the company.

e) Increased productivity and adherence to

quality standards – Productivity usually
increases when a company implements
training courses. Increased efficiency in
processes will ensure project success which in
turn will improve the company turnover and
potential market share.

f) Increased innovation in new strategies and

products – Ongoing training and upskilling of
the workforce can encourage creativity. New
ideas can be formed as a direct result of
training and development.
 Question 1 Answer Annotate Guidance

g) Enhances company reputation and profile –

Having a strong and successful training
strategy helps to develop your employer brand
and make your company a prime consideration
for graduates and mid-career changes. Training
also makes a company more attractive to
potential new recruits who seek to improve
their skills and the opportunities associated
with those new skills.

Question 2 Answer Annotate Guidance

Your company has asked your advice on the best Example answers – accept other relevant points – max Syllabus reference:
approach to take in order to develop the 4 marks each. Beardwell &
management skills of some of your qualified a) ANY TWO of the following PLUS some Thompson, Ch 7
accountants. supporting information/examples RELEVANT TO Learning and
 Question 2 Answer Annotate Guidance

a) Analyse two ‘counterproductive ACCOUNTANTS becoming managers. development, esp

characteristics’ professionals might be i. They over-apply their analytical skills and can pp218-219.
expected to display when moving into become paralysed by analysis, expecting their
management. expertise to solve organisational problems. NB – accept if
[4 marks each] ii. They are insensitive to others and feel they are candidates conflate
above organisational politics. some/different
iii. They respect logic and intuition over emotion points.
and tend to lack feeling and empathy.
iv. They lack awareness of common-sense
solutions to problems.

b) Evaluate the following approaches for use b)

with this group of potential managers. i. Competence-based approach – likely to be
i. Competence-based approach. generic, structured and prescriptive, which may
cause tension with professional values – can
reinforce ideological gap between managerial
and professional values – not recommended.
ii. Off-the-shelf training courses. ii. Off-the-shelf training courses - likely to be
generic and perceived as simplistic – this group
likely to prefer more contingent, personalised
approach, e.g. action learning – professionals
cope better with tailored provision – not
recommended.
iii. CPD. iii. CPD – continuous professional development -
[4 marks each] personalised, formal or informal but strongly
contextualised and therefore recommended for
professionals.

Question 3 Answer Annotate Guidance

Your organisation is being forced to move its Head Example answers – accept other relevant points – max Syllabus reference:
Office to a smaller building, which is both a 4 marks each. Beardwell &
challenge for the organisation and an opportunity 1. Hold a brainstorming session to identify the Thompson, Ch 9
for improvement. factors in each of the four categories: organisational
Analyse and evaluate the steps you would work Strengths, Weaknesses, Opportunities, and development, esp
 Question 3 Answer Annotate Guidance

through to conduct a full and proper SWOT Threats - Strengths and weaknesses are current pp322-323.
analysis and how you would use this to help you and internal to the company (e.g. reputation).
build a strategy. You can change them over time but not NB – simply
[20 marks] without some work. They are positives. explaining the ‘box’
Opportunities and threats are future and can gain a max 4
external (e.g. suppliers, competitors, prices)— mark s/20.
they are out there in the market, happening
whether you like it or not. You can’t change Some candidates
them. They are negatives. may present the
stages/steps in a
2. Cluster the reasons together to establish different order or
themes and linkages – Consider cause and conflate them –
effect – is one weakness caused by another they should still be
weakness? Then analyse weaknesses – i.e. is it credited for
easy or difficult to address? Is it high or low demonstrating their
importance? - This stage helps identify a way knowledge.
forward as you can identify which weaknesses
you can address first for fastest results.

3. Create objective statements – Look at each

weakness in turn and reformulate as an
objective statement – use SMART (specific,
measurable, achievable, realistic, time-
bounded) to test your objective.

4. Risk analysis – Consider the likelihood of the

threat occurring and its relative importance –
the risks you identify should lead to a
contingency plan. Likely and most important
threats need most attention – essential to
achieving the plan. Least important/urgent
probably only need monitoring.

5. Focus on the positive – Return to the strengths

and opportunities and prepare practical plans
 Question 3 Answer Annotate Guidance

for building on them.

Question 4 Answer Annotate Guidance

Your organisation has asked you to run a course for a) The protected characteristics under the Syllabus reference:
all staff on the protected characteristics covered by Equality Act 2010 are: Beardwell &
the UK Equality Act 2010. They have asked you to Age, disability, gender reassignment, marriage, Thompson, Ch 10
a) Outline what the protected characteristics civil partnership, pregnancy, maternity, race, The employment
are. religion or belief (including lack of belief), sex relationship and
[4] and sexual orientation). employee rights at
b) Analyse four different types of work, esp pp362-
 Question 4 Answer Annotate Guidance

discrimination defined by the act, giving an b) Example answers – accept other wording/titles 364.
example of each. provided synonymous – max 4 marks each for 4
[4 marks each] different points.

 Direct Discrimination - occurs when someone is

treated less favourably than another person
because of a protected characteristic they have
(e.g. not promoted because ‘too old’) or are
thought to have (see ‘perceptive
discrimination’ below) or because they
associate with someone who has a protected
characteristic (see ‘associative discrimination’
below).

 Indirect Discrimination already applied to age,

race, religion or belief, sex, sexual orientation
and marriage and civil partnership. Under the
Equality Act 2010 this was extended to cover
disability and gender reassignment. Indirect
discrimination can occur e.g. when an
organisation has a condition, rule, policy or
even a practice in the company, that applies to
everyone but particularly disadvantages people
who share a protected characteristic, e.g.
There’s a clause in the contract which says
employees may have to travel around the UK at
short notice. If it’s difficult for an employee to
do this because she’s a woman with young
children, this clause places her at a particular
disadvantage. It also places women generally at
a disadvantage, as they’re more likely to be the
carers of children. They could challenge the
clause because it affects them personally, even
if they’ve not been asked to travel at short
notice yet.
Question 4 Answer Annotate Guidance

 Associative/Perceptive Discrimination.
Associative Discrimination already applied to
race, religion or belief and sexual orientation.
This was extended to cover age, disability,
gender reassignment and sex. It means direct
discrimination against someone because they
associate with another person with a protected
characteristic. E.g. A candidate who has been
told she is getting a job is suddenly deselected
after revealing she has a severely disabled child
with complicated care arrangements. The
withdrawal of the job offer could amount to
discrimination because of her association with
a disabled person (disability being a protected
characteristic).

 Perceptive Discrimination already applied to

age, race, religion or belief and sexual
orientation. This was extended to cover
disability, gender reassignment and sex. It
means direct discrimination against an
individual because others think they possess a
particular protected characteristic. It applies
even if the person doesn’t possess that
characteristic. An example of this is an
employee who is rejected for promotion to a
supermarket buying team that sources wines,
because he has an Arabic name. The employer
has assumed that he is a Muslim and won't
want to deal with alcohol. This could be
considered discrimination by perception,
whether or not the employee is a Muslim.
Question 4 Answer Annotate Guidance

 As with associative discrimination, perceptive

discrimination does not apply to marriage and
civil partnership, nor pregnancy and maternity,
and it must be direct discrimination.

 Harassment is unwanted conduct related to a

relevant protected characteristic, which has the
purpose or effect of violating an individual’s
dignity or creating an intimidating, hostile,
degrading, humiliating or offensive
environment for that individual’. E.g. displaying
a calendar in a workshop of half-dressed ladies.
Harassment applies to all protected
characteristics except for pregnancy, maternity,
marriage and civil partnership. Employees will
be able to complain of behaviour they find
offensive –even if it is not directed at them.
Employees do not need to possess the relevant
characteristic themselves and are also
protected from harassment because of
perception and association. Third Party
Harassment already applied to sex and was
extended to cover age, disability, gender
reassignment, race, religion or belief and sexual
orientation. The Equality Act made the
employer potentially liable for harassment of
employees by people (third parties) who were
not also employees, such as customers, clients
and visitors. The company will only be liable
when harassment has occurred on at least two
previous occasions, they are aware it has taken
place, and have not taken reasonable steps to
prevent it from happening again.

 Victimisation occurs when an employee is

 Question 4
Question 5
The organisation for which you work wants to
ensure they are using the best performance
appraisal system for senior managers.
a) Analyse the following systems
i. Critical incident.
ii. Checklist using BARS.
iii. Management by
objectives (MBO).
iv. 360 degree.
[4 marks each]
Answer Annotate Guidance
treated badly because they have made or
supported a complaint (E.g. complained about
something the company does - whistle-blowers
- and so are not promoted when would have
expected to have been) or raised a grievance
under the Equality Act, or because they are
suspected of doing so. An employee is not
protected from victimisation if they have
maliciously made or supported an untrue
complaint. [NB more recent change =
disclosures will no longer have to be made 'in
good faith', but they do need to be 'in the
public interest' to be protected.]
Answer Annotate Guidance
Example answers – accept other relevant systems – Syllabus reference:
max 4 marks each Beardwell &
Any four of: Thompson, Ch 12
i. Critical incident technique: The critical incident Performance
method of performance appraisal involves management, esp
identifying and describing specific events (or pp432-436.
incidents) where the employee did something
really well or something that needs Candidates may use
improvement. It's a technique based on the other names when
description of the event and does not rely on referring to systems
Question 5 Answer Annotate Guidance

the assignment of ratings or rankings, although – this is acceptable.

it is occasionally coupled with a ratings type
system where someone evaluates and scores
the behaviour periodically.
The use of critical incidents is more demanding
of the appraiser since it requires more than
ticking things off on a form -- the appraiser
must actually write things out. On the other
hand, critical incidents can be exceedingly
useful in helping employees improve since the
information in them is more detailed and
specific than in methods that involve rating
employees. It’s individually oriented – the
issues raised are specific and relevant to the
appraisee. NB though, the impact of time
needs to be taken into consideration e.g.
something good 10 months ago doesn’t seem
as notable as something not very good
yesterday, individual focus can detract from
wider collective goals, ineffective behaviour or
negative response of employees is more easily
noticed than positive ones, it is time
consuming, it requires very close supervision
which employees dislike, recording detailed
information about every employee is
problematic and the rater may forget to
mention some important incidents.
Some appraisers encourage employees to
record their own critical incidents (where the
employee excelled, situations that did not go
well). That's an interesting variation that places
more responsibility with the employee, and
also does not require the appraiser to have
been present when the incident occurred and
might therefore be more suitable for senior
Question 5 Answer Annotate Guidance

managers.

ii. Checklist: one of the easiest methods. A

checklist is prepared by the HR manager and is
forwarded to the appraiser. The checklist may
include a list of questions (depicting behaviour
and skills and job performance) and the rater
has to answer them. BARS are Behaviourally
Anchored Rating Scales - scale points are
defined by critical (effective or ineffective)
behaviours of the employee. BARS usually
consist of a scale ranging from 5 to 9 points,
each representing a continuum of statements
that describes behaviour of employees ranging
from unacceptable to most effective. Focuses
on role-relevant criteria and takes account of
views of appraiser and appraisee as they discus
each criterion. Limited to the range of criteria,
however, and priorities in businesses often
change quicker than the forms. The criteria
tend to differ according to the type of job being
assessed. Questions can also carry scores
(equal or different), depending upon the nature
or importance, which are totalled at the end of
the procedure by the HR manager. This method
is considered favourable as the evaluation is
done on the basis of individual employee
performance without comparisons. Usually
used for lower skilled jobs than management
but could be used if sufficient discussion and
agreement reached.

iii. Goal setting/Management by objective: This is

an objective type of evaluation which falls
under the modern approach to performance
Question 5 Answer Annotate Guidance

appraisal. In MBO the appraiser and employee

agree upon specific and obtainable goals with a
set deadline. With this method, the appraiser
can define success and failure easily. It
recognises that it’s essential to know what
achievement is from the employee’s point of
view so MBO is an employer-employee driven
approach. The employees work upon achieving
their set goals and employers keep a record of
how close they are to accomplishing the goals.
This way, employees become clear about how
to achieve the goals, subsequently increasing
and improving performance level. MBO
therefore does not only work as a tool for
evaluating performance but also as a
motivation factor which allows the company to
extract maximum output from available human
resource, permitting employees adequate
space for self-development and growth. It may
therefore be good for senior management use.

iv. 360-degree appraisal: 360 degree appraisal

involves feedback of the manager, supervisor,
team members and any direct reports and even
sometimes customer etc. The appraiser asks
various questions and collects their feedback.
The information gathered is then assembled
through computerized system and individual
reports are prepared. Such reports are finally
distributed to the employees, following which
they can communicate with their appraiser re
their opinion about how to improve
performance. In this method of appraisal, an
employee’s complete profile has to be collected
and assessed. In addition to evaluating the
 Question 5
b) Recommend the most suitable to use with
senior managers, justifying your choice.
[4]
Question 6
You’ve been asked to ensure that your company’s
approach to managing salary progression is
aligned with its Business Strategy. Analyse and
evaluate the benefits to the organisation of the
following systems.
a) Individual PRP.
Answer Annotate Guidance
employee’s work performance and technical
skill set, an appraiser collects in-depth feedback
on the employee. 360-degree method is
considered to be the most effective way of
appraising employee’s performance as
information and feedback is collected from all
around.
b) Accept any choice for b provided it is well-
argued, but most will probably choose iii or iv
for the reasons given above – will tend to
depend on the type of company with which
they are most familiar, so allow for that.
Answer Annotate Guidance
Example answers – accept others points if appropriate Syllabus reference:
– max 4 marks each. Beardwell &
a) Individual PRP - The detail of real performance- Thompson, Ch 13
related schemes varies from business to Employee reward,
business, but there are several common esp pp487-493.
features: Individual performance is reviewed
regularly (usually once per year) against agreed
objectives or performance standards. This is
usually the performance appraisal. At the end
of the appraisal, employees are categorised
into performance groups – which determine
what the reward will be. The method of reward
will vary, but traditionally it involves a cash
bonus and/or increase in wage rate or salary.
Performance-related pay has grown widely in
 Question 6 Answer Annotate Guidance

recent years – particularly in the public sector.

This is part of a movement towards rewarding
individual performance which reflects
individual circumstances. There are several
problems with performance-related pay, e.g.
There may be disputes about how performance
is measured and whether an employee has
done enough to be rewarded. Rewarding
employees individually does very little to
encourage teamwork. There is doubt about
whether performance-related pay actually
motivates employees. This may be because the
performance element is usually only a small
percentage of total pay.

b) Pay for contribution. b) Pay for contribution - Sometimes seen as taking

the best of performance-related pay and
competency-related pay. It focuses on what the
employee is there to do: to contribute their skill
and efforts to the achievement of the
organisation’s purpose. Contribution-related
pay is a holistic approach, taking account of all
aspects of a person’s performance in
accordance with the formula ‘performance
means both behaviours and results.’
Contribution-related pay takes account of both
past successes and future potential. Rewards
can be either consolidated increases or
bonuses – mechanisms vary considerably - and
can be given for combinations of
organisational, team and individual
performance.

c) Competence-related pay. c) Competence-related pay – Similar to PRP but

based on input rather than output – aim is to
 Question 6 Answer Annotate Guidance

encourage, and reward development of

competencies desired by the organisation so
pays employees for ability to perform rather
than what they’ve actually done. Appears
positive for employees’ development. Requires
a competency framework and a means for
measuring individuals’ levels, which have to be
agreed and understood by managers and staff
alike. Advantages are: It helps motivate
employees to perform better and contribute to
the company. Since the employees get
rewarded for something, they feel they
deserve, they become loyal to the company.
Competency based pay helps push employees
beyond their comfort zone as they feel they can
earn more based on their competencies,
facilitates lateral career moves, helps integrate
role and organisational core competencies,
forms part of integrated, competence-based
approach to people management.
Disadvantages are: Sometimes competition
within the organization can lead to a disjoint in
a team, which affects overall output, in some
cases, competency-based pay can lead to
favouritism towards a particular employee,
assessment of levels can be difficult, links to
pay may be arbitrary etc.

d) Skills-based pay. d) Skills-based pay – Also known as knowledge-

based pay. Encourages employees to gain
relevant qualifications e.g. NVQs - means of
developing broader and deeper skills among
the workforce. Person-based and not a job-
based, system, pay progression is directly linked
to skills acquisition, makes the employee multi-
 Question 6 Answer Annotate Guidance

skilled and therefore flexible. Training is no

longer only for current competence but is also
to prepare for the next stage of skills and so
pay systems which promote current and future
skills needs are increasing in importance among
employers BUT may not necessarily reflect how
well the skill is used and cost-effectiveness
needs to be closely monitored – only skills
needed and used should be paid for.

e) Team-based pay. e) Team-based pay - A portion of an employee's

[4 marks each] wages or bonus is tied to the success of team
goals, with all team members typically
receiving the same or similar incentive pay.
Variant of individual PRP – designed to
reinforce collaborative working – pay for
achievement of team objectives/targets – looks
good in theory BUT relies on good teams, team
rivalry can develop, staff don’t want to leave
high-performing teams to help achieve
organisation’s goals/strategy, high performers
in low-performing teams feel dissatisfied etc.
 Question 7 Answer Annotate Guidance

Your Board are concerned that your UK workers Example answers – accept other points if appropriate – Syllabus reference:
may have more influence through Non-Union max 4 marks each. Beardwell &
Employee Representation (NER) today than they a) Power – Lack of ‘latent’ power resources, i.e. Thompson, Ch 14
did when the entire workforce was unionised. employees cannot bring collective pressure to employee voice, esp
a) Write a report evaluating the effectiveness bear on management via the use of militant pp515-524.
of NER and the employee voice in the action e.g. strikes.
following areas: ii. Autonomy – NER structures lack independence
i. Power. as the constitutions and terms of reference are
ii. Autonomy. typically derived from management.
iii. Competence. iii. Competence – Representatives are often
lacking in technical skills e.g. knowledge of
management accountancy and the law.
iv. Legitimacy. iv. Legitimacy – An amalgamation of the above
[4 marks each] factors undermines the ability of NER to
‘deliver the goods’ for employees severely
compromising their status as legitimate modes
of voice.

b) Evaluate the benefits to the organisation b) Avoids workers becoming unionised, - less
of NER. sceptically, fosters cooperation, builds morale
[4 marks] and can enhance productivity. Useful to have
history of NER involvement in case of e.g. TUPE
 Question 7 Answer Annotate Guidance

negotiations.

Question 8 Answer Annotate Guidance

Your organisation is expanding overseas and needs Example answers – accept other points if appropriate – Syllabus reference:
to understand the impact on strategic HR. max 4 marks each. Beardwell &
a) Briefly analyse Strategic International a) SIHRM issues: Although the MNE is separated Thompson, Ch 17
Human Resource Management (SIHRM) across several nations it is a single enterprise. It International HRM,
issues, functions and policies/practices. needs to consider how to balance the needs for esp pp614-617.
[4 marks] differentiation and integration - needs to be
aware of how much autonomy it can and needs Do not expect full
to grant to local units. It needs to decide how content on left for a
much to control and how to coordinate those for 4 marks –
units. As an MNE, it needs to decide how much candidates simply
control it will exert over the internal operations need to
of the local unit, particularly how much demonstrate that
sensitivity to the local environment is needed. they understand
 SIHRM functions: the MNE’s human resource about the issues,
orientation; the time, energy and financial functions and
resources devoted to operating the human policies/practices.
resource organization in the MNE; and the
location of those resources and the human Some evaluation of
resource organization. effect of each
 SIHRM policies/practices: the development of required but can be
general guidelines on how individuals will be very simplistic and
 Question 8
b) Evaluate the effect on SIHRM of,
i. Exogenous factors.
ii.
ii. Endogenous factors.
iii.
iii. Strategic MNE components.
Answer Annotate Guidance
managed and the development of specific general provided
practices. candidates
demonstrate
b) Evaluate the effect on SIHRM of; understanding of
i. Exogenous factors (outside the MNE) include what the factors
industry characteristics and country/ regional actually are.
characteristics. Industry characteristics include
a) type of business and technology available; b)
nature of the competitors; and c) extent of
change.
 The country/ regional characteristics include: a)
political conditions; b) economic conditions; c)
legal requirements; and d) socio-cultural
conditions.
Endogenous factors (within the MNE) include a)
structure of international operations; b) the
MNE’s headquarters international orientation;
c) competitive strategy being used; and d) the
MNE’s experience in managing international
operations.
Strategic MNE components - Interunit Linkages
- issues and questions associated with
differentiation and integration are covered by
the term Interunit Linkages - multinational
enterprises are concerned with operating
effectively in several different countries.
Consequently, MNEs are continually discussing
how to manage their various operating units.
They are interested in how these units are to
be differentiated and then how they are to be
integrated, controlled and coordinated.
Internal Operations - MNEs are also concerned
about strategic issues other than those dealing
 Question 8 Answer Annotate Guidance

with the linkage of the units. In addition to

working together, each unit has to work within
the confines of its local environment, its laws,
politics, culture, economy and society. Each
unit also has to be operated as effectively as
possible relative to the competitive strategy of
the MNE and the unit itself.

iv. MNE concerns and goals - global

iv. MNE concerns and goals. competitiveness; efficiency; local
[4 marks each] responsiveness (sensitivity); flexibility; and
organizational learning (and transfer of
information). While these concerns and goals
are important to MNEs, their degree of
importance and the nature of how the
importance is constructed may vary with the
specific MNE. Being globally competitive for an
MNE that is really in a global industry has
implications for competitive behaviour that are
different from an MNE that is in a
multidomestic industry. Nevertheless, for
survival, all MNEs need to be concerned with
global competitiveness.