When parties are embroiled in a dispute, a neutral third party can help them come to an agreement through alternative dispute resolution methods.
There are two basic types of alternative dispute resolution, or ADR: Mediation and arbitration (and sometimes a combination called med-arb).
In mediation, a neutral third party tries to help disputants come to a consensus on their own. Rather than imposing a solution, a professional mediator seeks to assist the conflicting sides in exploring the interests underlying their positions. Working with parties together and sometimes separately, mediators try to help them hammer out a resolution that is sustainable, voluntary, and non-binding.
In arbitration, a neutral third party serves as a judge who is responsible for resolving the dispute. The arbitrator listens as each side argues its case and presents relevant evidence, then renders a binding decision.
In either case, a neutral third party can help us look past our “rights,” and focus on interests—the needs, desires, or concerns that underlie each side’s positions. If someone asks you why a dispute is important to you, your answer will reveal your interests.
A good interest-based mediator will be a fast learner, capable of quickly picking up the technical knowledge necessary to discuss the problem. More important, an interest-based mediator doesn’t need to fully understand the technical aspects of a problem to assess why the dispute is important to each party and which solutions each party might accept.
By beginning with this knowledge and eventually exchanging settlement proposals, a neutral third party can help parties resolve the most complex problems.
What is dispute resolution? There are three basic types of dispute resolution, each with its pros and cons. The first two, mediation and arbitration, are considered types of alternative dispute resolution because they are an alternative to litigation.
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We said goodbye to breakfast meetings, client lunches, and after-work happy hours. Goodbye to handshakes, fist bumps, and pats on the back. Goodbye to the boots-on-the-ground sales game as we knew it, and hello to Zoom calls and text messaging.
To make matters even more difficult, the economy started to trend downwards—and so did the … Read More
If you work with others, sooner or later you will almost inevitably face the need for conflict resolution. You may need to mediate a dispute between two members of your department. Or you may find yourself angered by something a colleague reportedly said about you in a meeting. Or you may need to engage in … Read More
Communication in business negotiations is important – but even more so when your counterparts and negotiating partners are family members. In this article drawn from negotiation research, the negotiation strategies for avoiding conflict and crafting win-win negotiated agreements are outlined.
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Organizations have long recognized the value of hiring professional mediators to help resolve disputes. More and more, managers have begun to also see value in securing mediation training for themselves and their employees. Although there are times when the services of an unbiased, professional mediator are needed, there may also be instances in which employees … Read More
“ABC: Always Be Closing.” That’s the sales strategy that actor Alec Baldwin’s character Blake shared in the 1992 film Glengarry Glen Ross as he tried to motivate a group of real estate salesmen. In his verbally abusive, profanity-laced speech, Blake presented a ruthless model of closing a business deal that ignores customers’ needs and cuts … Read More
When parties involved in a serious conflict want to avoid a court battle, there are types of mediation can be an effective alternative. In mediation, a trained mediator tries to help the parties find common ground using principles of collaborative, mutual-gains negotiation. We tend to think mediation processes are all alike, but in fact, mediators … Read More
Parties can often reach a better agreement through integrative negotiation—that is, by identifying interests where they have different preferences and making tradeoffs among them. If you care more about what movie you see tonight, but your friend cares more about where you have dinner, for example, you can each get your preference on the issue … Read More
We generally think of mediation as a dispute-resolution device. Federal mediators intervene when collective bargaining breaks down. Diplomats are sometimes called in to mediate conflicts between nations. So-called multi-door courthouses encourage litigants to mediate before incurring the costs – and risks – of going to trial.
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Conflict in business negotiation is common, but it doesn’t have to be that way. There are steps we can take to avoid types of conflict and misunderstandings. Often, it helps to analyze the unique causes of conflict in particular negotiation situations. Here, we look at three frequent types of conflict in business negotiations and offer … Read More
When parties find themselves involved in a serious conflict, they often try to avoid the expense and hassle of litigation by turning to one of the two most common alternative dispute resolution processes: mediation or arbitration. Disputants who are concerned about these drawbacks might want to consider a hybrid mediation-arbitration approach called med-arb.
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Conflict resolution is the process of resolving a dispute or a conflict by meeting at least some of each side’s needs and addressing their interests. Conflict resolution sometimes requires both a power-based and an interest-based approach, such as the simultaneous pursuit of litigation (the use of legal power) and negotiation (attempts to reconcile each party’s … Read More
When parties can trade on their preferences across different issues, they reduce the need to haggle over price and percentages. But are there ways to avoid conflict in other types of negotiation?
To find ways to avoid conflict, especially deep-seated conflicts, and reach agreement with adversaries, former U.S. secretary of state Madeleine Albright advises close observation … Read More
As the starting point from which all commercial transactions occur, from purchasing equipment to setting salaries, negotiatiosn in business is an essential skill no matter what field a negotiator finds herself. Using an objective standard can strengthen your proposal and eliminate emotional bias.
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So, you’re stuck in a serious dispute, but you’re desperate to avoid the hassle and expense of a court case. You’ve heard about alternative dispute resolution but are not sure what it entails.
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No one likes to go to court. Not only is it expensive and time-consuming, but it often leads to frustrating results and damaged relationships. So, how does mediation work in a lawsuit and is legal mediation a better route?
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During the course of a complex negotiation, the last thing we want to think about is the possibility that a serious disagreement or contract breach will arise during the implementation stage. Yet we also know that such conflicts are common.
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In his book How to Negotiate Anything with Anyone Anywhere Around the World, Frank L. Acuff advises readers to expect Germans to be reserved, hard bargainers who may be offended by personal questions and tardiness. Those negotiating with Chinese counterparts are cautioned to avoid direct questions and to prepare to make numerous concessions. And negotiators … Read More
More and more companies are inserting alternative dispute resolution (ADR) clauses in their contracts with customers and vendors—and even, in some cases, in agreements with their own employees. ADR clauses can be beneficial for all concerned if it means avoiding the cost, delay, and uncertainty of going to court. Mandated mediation, in particular, may offer … Read More
When parties are fighting for scarce resources, disputes can become intense. Negotiation is often the answer, but agreements may need to be continually revisited to keep the peace. That’s the main takeaway from the dispute that erupted in the English Channel between French and British fishermen this August.
In Europe, the European Union sets fishing … Read More
A 62-year-old salesman believes he has convincing evidence that his boss passed him over for a promotion because of his age. What options does he have? He could let the matter drop and perhaps look for another job. He could file an employment-discrimination lawsuit. Or, if his company offers mediation services, he could have the … Read More
Conventional wisdom warns us against doing business with family members. Negotiations between people linked by close ties can result in hurt feelings, damaged relationships, or simply the nagging feeling that a better deal was within reach.
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When a negotiation reaches an impasse, it can be tempting to use threats and punishment to try to coerce the other side into conceding. That happened in a dispute between Amazon and Hachette, one of the largest New York publishers, as reported in the New York Times.
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The problem: You’re not sure which of the two most common dispute-resolution processes, mediation or arbitration, to use to resolve your conflict. Mediation is appealing because it would allow you to reach a collaborative settlement, but you’re worried it could end in impasse. You know that arbitration would wrap up your dispute conclusively, but it … Read More
About 15 months after becoming the largest U.S. city to file for bankruptcy, Detroit is on track to begin rebuilding and growing stronger. On November 7, a federal judge approved a plan aimed at ridding the city of its $7 billion in debt and investing about $1.7 billion in city services, the New York Times … Read More
Adapted from “Coping with Culture at the Bargaining Table,” first published in the May 2009 issue of Negotiation.
Why we focus on culture
Why does concentrating on the other side’s culture lead to problems in negotiation? Consider that negotiators often focus too narrowly on the most obvious information about the task at hand. Such focusing failures lead negotiators to … Read More
Conflict within companies can be very costly, both in time and resources. Alternative Dispute Resolution, or ADR, may be helpful as you consider ways in which you can transition from conflict to productivity within your own organization.
The three most common ADR techniques are: mediation, arbitration, and med-arb. During mediation a neutral third party facilitates a … Read More