Conflicts can arise in the workplace, and they can interfere with normal commercial operations. Moreover, the disagreements can cause significant financial losses for all parties involved if the case is taken to court. Dispute resolution is the process through which the entities in a conflict evaluate the problem and find an agreement. This alternative strategy is favorable because it will reduce the total expenses for your company. Here are the most important dispute resolutions methods that you should understand and consider using in your business disagreements.
Negotiate with the other party
The most basic method for alternative dispute resolution is a negotiation. This process should be the first choice because it is quick and inexpensive. As implied, the technique involves a dialogue or back-and-forth communication between the people or parties in conflict. Each of the individuals or groups will state their requirements and terms. They will then discuss the details and find an advantageous compromise. Lawyers can be hired to perform the negotiations, but the disagreeing entities will make the decision.
Find an arbitrator
Arbitration is an out-of-court dispute resolution method, but the general structure is similar to a traditional trial. This process involves submitting the matter in dispute to an impartial party for a fair decision. Unlike a negotiation, this option is more formal and controlled by the arbitrator, not the people in conflict. Each side will present their case, and they may be allowed to give evidence through documents and exhibits. The impartial ruler will make a decision based on the information provided. The main drawback of arbitration is that only one side wins.
Mediation is a dynamic and highly interactive process in conflict resolution. Like arbitration, a third party is included in the discussions to help the disagreeing entities communicate more effectively. The role of the mediator is to assist the involved parties to reach a mutually beneficial and acceptable decision. There are ground rules often established before mediation sessions to ensure that the process is fair. The impartial party can also meet with each side separately. Like negotiations, both entities will win, and the solutions can be creative.
Settle in court
There are times when trying to negotiate with the other party or involve an impartial individual like an arbitrator or mediator may not work. In this case, involving the court may be the best option. Once the matter is presented in court, the judge will make a ruling based on the evidence an testimonies presented by both parties. Before going for this option, it is critical to note that the court can rule in the favor of the other party based on the evidence presented. Consider getting the legal advice and representation of a commercial lawyer before settling for the court.