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Advanced Business Policy, OD and ADR

productivity as well as give employees satisfaction. In order to develop an organization advanced business policies should be put in places as regard dispute resolutions these policies should be written and clear so that employees understand the procedure to present their grievances and how they can be solved. There are some disputes which cannot be solved within the organization procedures hence the need for an alternative dispute resolution procedures like Arbitration, Mediation and Negotiation.

4.1 Arbitration

Arbitration is a dispute resolution process where the opposing parties select or appoint an individual called an arbitrator. Upon appointment, the Arbitrator will arrange the process to hear and consider the evidence, review arguments and afterwards will publish an award in which the items of dispute are decided. In some cases the Arbitrator can conduct the arbitration on documents evidence only. When published the Arbitrator’s decisions are final and binding on the parties. It is rare for an arbitration to be appealed to the courts. Arbitration may comprise a sole Arbitrator, or may be a panel of Arbitrators. Costs of the arbitration are disposed of in the Arbitrator’s award, unless the parties have some agreement to the contrary.

4.2 Mediation

Whereby under Arbitration it is the Arbitrator who decides the fate of the dispute under Mediation it is the parties concern that decides. Mediation is a dispute resolution process in which the parties freely choose to participate and any agreement reached to settle disputes is done solely by the parties, without interference. The parties select the Mediator and once selected, the Mediator will arrange the mediation process. The Mediator makes no decisions, instead he/she as a facilitator only assist the parties to understand the dispute, provide structured discussion and help the parties reach a dispute settlement agreement.

If the parties can’t reach a settlement agreement, they are free to pursue other options. The parties generally decide in advance how they will contribute to the cost of the mediation. Mediation is very important form of Alternative Dispute Resolution (ADR), particularly if the parties wish to preserve their relationship.

Successful mediation as an alternative method of dispute resolution has the following elements:

1. An Impartial third party facilitator.

The third party neutral, the mediator, is the person who makes the entire process work. As long as there is a neutral facilitator. The parties can trusst that they have some safety and are not being abused by an interested party. All of these programs work because the mediator is in them is known to either be neutral or supportive of the parties and not an involved party.

Thus the first thing that makes a process one of mediation (and not something else) is a third party who facilitates - aids the parties in a neutral fashion to find the parties own best interest.

2. A third party who protects the integrity of the proceedings

Usually this means that the facilitator or mediator protect the confidentiality of the proceedings. Thus, not only does the mediator not take sides against any [next page]