Mediation vs. Arbitration
When it comes to resolving conflicts and situations that arise while engaging in business, the two common remedies that often become obvious and available are mediation and arbitration. When using those words in a normal context, they are related but mean two entirely different things due to the voluntary (or involuntary) nature of the proceedings. There is also the consideration of who (or who is not) empowered to make any resolutions or final calls as to who should win out in a dispute. While there are upsides and downsides to each approach, both mediation and arbitration have their place and can be very useful.
When it comes to mediation, the advantages are that people can come to a mutually agreed to meeting and discuss what is going on and what can be done to fix a situation without involving a judge or any other decider that will just make a decision based on the merits of each case rather than allowing a solution to come through mutual consent and agreement. With mediation, the solution that comes to pass is typically agreed to by all parties and thus there is less acrimony and bad feelings. This does not mean that all parties will get all they want but that can actually happen if the circumstances are right and proper. However, arbitration is there for situations where an agreement cannot or will not come to pass. If there is an impasse that needs to be fixed on a deadline and/or...
Further, there can be a blend between mediation and arbitration in that the moderator can try to facilitate the two parties mediating the dispute amongst the parties with a little help. However, if there is simply no progress being made, than that same person (or another person) can be the one to make a judgment call and pick a solution that is seemingly the best (ADR, 2015; Shachar, 2011; McLean & Wilson, 2011).
The two methods combined, those being mediation and arbitration, can create a synergy because of the net gain made by combining them. Synergy basically means that the sum of the parts is less than what is truly gained by combining them. In other words, having mediation on its own may solve some issues and indeed would work for situations where the two or more parties can work out a solution without something being forced or judged. Conversely, arbitration ensures that a solution will be found but it basically precludes mediation as an option because the decision is forced based on whomever is deciding and how they see things. A combination of the two allows for some flexibility whereby a solution can be mediated and found voluntarily if the sides involved are willing and able to come to one. However, if that possible for some reason, there will…
