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

Successful dispute resolution “requires parties to voluntarily examine the disputes and work together to arrive at a solution,” notes law firm Davis Wright Tremaine. Most dispute resolutions fall into three primary methods to reach this goal: negotiation, mediation, and arbitration. 

Direct Dialogue Through Negotiation

Negotiation is the most informal and direct method of dispute resolution. It requires parties to come together and discuss differences to reach a mutually acceptable agreement. Negotiations occur in various settings, from informal discussions between individuals to formal negotiations between large corporations or nations.

The process typically starts with both parties gathering information, defining their interests, and developing strategies. They then meet with all parties to present positions and explore solutions. Any misunderstandings are addressed, and common ground is identified. Parties make concessions and compromises to reach a resolution.

One of the most significant advantages of negotiations is the flexibility to create solutions that meet the specific needs of the parties involved. The parties retain full control over the outcome and often can resolve conflicts quickly. Negotiation is frequently used in disputes where the parties have an ongoing relationship and a mutual interest in resolving the conflict amicably.

Facilitating Resolution Through Mediation

Mediation involves a neutral third-party mediator who assists the disputing parties in reaching a voluntary agreement. Unlike a judge or arbitrator, a mediator does not impose a decision but facilitates communication and promotes understanding.

The mediation process generally starts with the mediator explaining the process, setting ground rules, and establishing a respectful environment. Each party presents its perspective without interruption, and then the mediator helps clarify issues and gather relevant information. They also facilitate discussions to find mutually acceptable solutions.

One of the biggest advantages of mediation is that it involves an impartial person who can ensure a fair process and support collaboration between the two parties. Mediation is often used in disputes involving families, workplaces, and communities where preserving relationships is crucial. 

Arbitration Provides a Binding Decision by a Third Party

Arbitration involves a neutral third-party arbitrator or panel who hears evidence and arguments from the disputing parties and then makes a binding decision. It is more formal than negotiation and mediation but less so than litigation. 

Both parties agree to enter arbitration, often as a step to avoid entering litigation. Both sides present their cases, including documents, witness testimony, and arguments. The arbitrator reaches a binding decision based on the evidence and arguments.

Arbitrators are typically chosen for their expertise. They offer finality to a dispute, providing a decision that is binding and enforceable in court. Arbitration is also typically faster and less costly than litigation. It is commonly used in commercial disputes, such as international trade, construction contracts, and employment agreements. It is also prevalent in sports and consumer disputes.

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.