A business arbitrator gives a thumbs up as two businessmen shake hands over a negotiated settlement.

What Are The Three Main Types of Dispute Resolution?

Disputes are an inevitable part of life. When people interact, whether in their personal lives or on behalf of a business or government, disputes eventually arise. Those with skills in resolving these disputes are highly valued for their ability to help end organizational conflicts that negatively impact morale and budgets.

Dispute resolution professionals often use their skills in an area known as alternative dispute resolution (ADR), which refers to resolving conflicts outside of a court of law. For those who aspire to one of the many careers available in dispute resolution, understanding the primary methods used in ADR is an essential first step. They provide the foundation for effectively selecting the most appropriate conflict resolution method.

Three Methods Commonly Used in Dispute Resolution

Dispute resolution works best when both parties commit to working through their differences. Law firm Davis Wright Tremaine explains that resolving conflict often begins with open communication and a willingness to collaborate. Most disputes are handled using one of three main methods: negotiation, mediation, or arbitration.

Negotiation Is the Most Direct Path to Resolution

Negotiation is the most flexible and informal method of dispute resolution. It brings the involved parties together to openly discuss their concerns and find common ground. This process happens in many settings, from personal disagreements to business deals and international discussions.

Each side gathers facts, identifies goals, and prepares a strategy. During negotiations, they share their viewpoints, respond to questions, and work toward a solution that satisfies everyone involved. They may need to compromise, but they stay in full control of the outcome.

Negotiation offers speed, privacy, and creative problem solving. It works well when both sides want to preserve their relationship and avoid legal action.

Mediation Involves a Neutral Third Party

Mediation brings in a neutral third party, called a mediator, who helps both sides communicate effectively. Unlike a judge or arbitrator, the mediator does not make decisions. Instead, they guide the conversation and help both parties find a solution together.

The mediator explains the process and sets expectations at the start. Each party shares their side of the story without interruption. The mediator asks questions, clarifies key issues, and helps both sides explore practical options.

Mediation supports respectful conversation and builds trust. It is often used in family, workplace, or community conflicts where relationships matter. Because both parties help shape the agreement, the results often feel fair and lasting.

Arbitration Leads to a Binding Decision

Arbitration is a more formal type of dispute resolution. A neutral arbitrator or panel reviews the case, listens to both sides, and makes a final decision. This decision is legally binding and must be followed.

Parties agree ahead of time to resolve the conflict through arbitration. Each side presents their evidence, calls witnesses, and makes arguments. The arbitrator then reviews everything and delivers a ruling.

Arbitrators often have deep knowledge in the subject area of the dispute. Arbitration is typically faster and less expensive than going to court. It is widely used in business, construction, employment, and consumer contract cases.

Touro University Worldwide’s MA in Dispute Resolution

Touro University Worldwide offers a comprehensive online Master of Arts in Dispute Resolution degree specifically tailored for graduate students. Graduates emerge with the essential knowledge and skills needed to manage workplace conflicts. The online curriculum comprises 36 credits and features eight-week courses, allowing students to earn their master’s degree in just one year.

The coursework focuses on developing crucial skills like negotiation, mediation, arbitration, and facilitation while providing a foundation in dispute resolution and alternative dispute resolution techniques. Students are trained to manage conflicts involving individuals, groups, and organizations in workplace settings. The program’s faculty members bring extensive experience to the virtual classroom, incorporating the latest techniques and strategies in dispute resolution.

Touro University Worldwide program graduates qualify for numerous positions, including mediator, arbitrator, conflict resolution consultant, ombudsman, human resources specialist, and legal consultant.

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