Third Party Conflict Resolution
January 17, 2013
Third Party Conflict Resolution
In the negotiation process, the use of third-party conflict resolutions often comes into play when parties cannot seem to reach an agreement regarding resolving mutual interests. These types of third-party conflict resolutions are: arbitration, collaboration, litigation and mediation. For the Seatcor Manufacturing Company, the use of third-party conflict resolution is necessary. The researchers of Team A have reported collaborative ideas of this case by (1) analyzing the possible intervention strategies, (2) applying what is thought to be the best strategy, (3) explained how the best strategy should ...view middle of the document...
Here a third party, the Mediator assists in identifying areas of dispute and searches for compromises in those areas from both sides. Mediation has become a popular low-cost solution to litigation, especially for divorce cases. Since the Mediator has no formal power, the participants have the greatest say in shaping the terms of the settlement. This of course only works if the parties are open to the process, as most cases are voluntary.
• Arbitration - Arbitration allows negotiators to have considerable control over the process but little control over the outcome. Outcomes in arbitration can be voluntary or binding. In voluntary arbitration parties are not required to comply with the arbitrator’s decision, but are by law or contractual agreement in binding decisions. Some decisions are left almost entirely to the arbitrator’s discretion, while others in “final-offer” arbitration must be selected from previous chosen outcomes presented by the parties. Arbitration is the most widely recognized intervention strategy because of its use in labor relations and professional sports.
• Litigation – Parties utilize this strategy when they do not share common goals and interest. Litigation also allows parties to draw the process out as long as possible. This type of strategy may be beneficial when changes over time may be advantageous to a party. The draw- back is the outcome typically does not concede to any middle ground. Therefore, this strategy is more distributive in nature in that usually only one party gets what they want.
• Collaboration – In collaboration, parties seek cooperation and seek solutions advantageous to both parties. This win-win strategy assertively utilizes the fact that both parties have common goals. Parties identify common ground and search for areas of agreement.
• Hybrids - Mediation-arbitration is a complementary and facilitating strategy for final-offer arbitration. Because in mediation the parties expect a compromise, the parties may choose to wait for the arbitration rather than make concessions during mediation.
Arbitration-mediation another hybrid approach which has three stages. First, the arbitrator holds a hearing and reaches a decision” which is placed in a sealed envelope and is not revealed to the parties” (Conlon, Moon, and Ng, 2002, p. 979). Mediation occurs at Stage 2. If an agreement is not reached, in Stage 3 the arbitration ruling is revealed and is binding on both parties
Mediation as the Best Strategy
The best strategy for the third party conflict resolution is mediation. Mediation is a dispute resolution process, in which a neutral third party assists the participants in reaching a voluntary and informed settlement. Mediation and diplomacy have both been used frequently. There are many options available for dispute resolutions. People have a tendency to assume that parties who have a dispute cannot work together to resolve the dispute...