Conflict resolution – dispute resolution

3 ways to resolve a dispute

Three options for dispute resolution are:

• a negotiated outcome
• a mediated outcome
• an arbitrated or adjudicated outcome.

Some types of disputes may have to be dealt with through a particular process. For example, modern awards and enterprise agreements generally include dispute resolution provisions.

1. A negotiated outcome between parties

This approach involves the parties coming together and trying to reach an agreement:

• Each person explains their position, including any earlier attempts to resolve the issue. Rather than trying to disprove arguments and statements, focus on verifying facts. This step includes identifying needs and desired outcomes. It is a useful way of identifying any miscommunication or misinterpretation of events. It is also a useful way to identify shared needs and outcomes. 
• The parties identify different options for resolving the conflict and consider the costs and benefits of each. 
• The parties agree on a mutually acceptable solution. This solution aims to maintain each party’s needs and outcomes.
• The parties identify actions they can each take towards resolving the issue. These small steps build trust and enhance the relationships between people.

This approach can be a good first step for resolving most types of dispute. 

2. A mediated outcome between parties

This approach involves an independent person helping the parties reach an agreement. A mediator can be useful because they are unbiased and objective. This person may be from within your organisation (e.g. another team member, a manager, a human resources officer) or an external person (e.g. a mediator).

The process is similar to the negotiated outcome process:

• Each person explains their position.
• The mediator focuses on verifying facts and clarifying perceptions.
• The parties and the mediator identify different options, including their costs and benefits. 
• With the help of the mediator, the parties agree on a mutually acceptable solution, and identify actions to resolve the issue. 

This approach may be appropriate if a negotiated outcome is not possible.

3. An arbitrated or adjudicated outcome

These approaches involve either an independent arbitrator or a court deciding how the dispute should be resolved. These are formal processes, which means the parties involved must comply with the decision. In the case of arbitration, the parties will normally agree in advance to submit their dispute to arbitration, and comply with the arbitrator’s decision. The arbitration will not normally be limited to determining existing rights and liabilities—the outcome of the arbitration might involve creating new rights. Court proceedings, on the other hand, are compulsory, and the court will be limited to determining existing legal rights are liabilities. 

These processes can be used when other dispute resolution approaches have not worked. Arbitration is most often used in situations like industrial relations disputes or contractual disputes between businesses.

Getting the parties together and negotiating an agreement is the simplest way to resolve conflict. And it’s a good place to start. But it doesn’t always work. When it doesn’t, you may have to use an independent mediator or even an arbitrator or court.