4 Tiers Of Conflict Resolution A Small Dispute May Go Through
Conflict can exist in many forms in a business. Two partners might disagree on how to solve a problem in the business, an employee may feel like they've been unfairly treated by their employer, two businesses may be at odds with each other due to unfair tactics, etc.
When such problems occur, there are various ways that such problems can be solved. Although going to court is an option, many will hope to avoid it since it can be time consuming and expensive. Luckily, there are other options to consider.
1. Mediation
The easiest way to think of mediation is as a negotiation that is facilitated by someone else, a third party, who has no bias on the issue. In mediation, the 3rd party doesn't make a decision based on the presentations of the parties at conflict. Instead, those involved in the conflict attempt to negotiate with each other in the hopes of arriving at an amicable solution. The 3rd party simply facilitates the bargaining process and ensures there is proper communication between the two.
2. Arbitration
Unlike mediation, arbitration uses a process that's much more similar to a court process. The parties present their arguments and evidence to an arbitrator or panel of arbitrators. In case there are witnesses, they can be called as well. The arbitrator will then be the one to make the decision regarding the case. Their ruling on the case may be open to appeal or it may be final.
3. Collaborative Law
This is a fairly new approach to resolving conflicts. Instead of a courtroom setting, the parties at conflict can approach it more like a problem that they need to troubleshoot rather than something they need to win. The disputing parties retain their attorneys, and the attorneys will help them to resolve the issue.
There is a full and open disclosure of documents and any information pertaining to the issue. If there are any mistakes, rather than being taken advantage of, these are instead corrected. This process usually tries to create a situation where both parties win.
4. Litigation
Litigation should preferably be the last step as far as conflict resolution is concerned. In commercial litigation, the disputing parties head to court where their legal representatives argue out the case. The evidence is presented, and witnesses are called. At the end of the day, a judge or jury must make a decision regarding the issue. This process can be expensive, drawn out, and unsatisfactory in the long run.
The best thing you can do is consult a small business attorney who can represent you in all stages of conflict resolution, with the goal of avoiding litigation. A lawyer who specializes in small business law will understand the benefits of keeping legal disputes from becoming protracted and expensive.