Sample answer/Answers could include:
Financial consequences:
• Cost-cutting, which can lead to greater competitiveness
• Lost production and sales
• Business and employees suffer loss of income
• Costs of legal representation
• Empowerment of employees
Sample answer:
Financial cost – the main financial cost comes from loss of production. This can lead to serious
financial issues, such as increasing debt, loss of profits and, ultimately, business closure.
Financial benefit – conflict can ultimately lead to the empowerment of employees, which can
boost morale, which leads to increased productivity and fewer future disputes. It could ensure
the survival of the business in the long term.
(The question can be addressed from either the employer’s or employee’s perspective.
Candidates may take an alternative approach that, if correct, should be rewarded.)
