Chapter 1
Studying Business Grade 12
PTY LTD
6. Conflict Management Through Third-party Interventions Conflict that is not handled appropriately may become destructive. Sometimes it is possible for the dispute to be settled between the parties involved, but if the issue cannot be resolved there are easier and more cost-effective ways to try and resolve conflict than to battle it out in court. An alternative method of resolving the conflict may be to involve a third party to assist in this process but it is important that both the conflicting parties feel they can trust the integrity of the third party. Although it is possible to use an internal person (part of the organisation) as a third party if the conflict situation exists in the business, it is often more productive and viewed as more fair to use an outsider. Conciliation involves a third party helping the conflicting parties to address their conflict directly and constructively, but only in the role of a facilitator. The mediator will attempt to help the conflicting parties to reach a mutually acceptable decision by fulfilling an advisory role, but may not, (unlike an arbitrator) solve the problem by coming to a decision on behalf of the conflicting parties. Once the arbitrator has made his decision it is binding on both parties and it is therefore critical that the arbitrator is fair and impartial in his judgment.
Conflict Resolution Steps: Negotiation
Conciliation
Mediation
Arbitration
NEGOTIATION
CONCILIATION
MEDIATION
ARBITRATION
Disputants
Disputants
Disputants
Disputants
The two parties sit down and try to come to a compromise by themselves.
If negotiation is unsuccessful, a third person gets involved, but only to facilitate the discussion i.e. make sure both parties get a chance to speak.
If conciliation does not work, the third person gets more involved and will give advice, but the ultimate decision is still up to the original parties involved.
If mediation has not solved the problem, the decision is taken out of the hands of the original parties, and the third person has to make a judgement call.
E.g. Father and son disagree on a curfew time, but sit down and discuss it together.
E.g. Two friends have been fighting due to a misunderstanding, and a third friend joins the discussion to make sure both have all the information and the misunderstanding is cleared up.
E.g. Two business partners are fighting about whether or not to sign a new contract. A friend who is a lawyer gives them some more insight, and they are then able to agree.
E.g. Two floor managers in a factory cannot agree on the placement of a large new piece of equipment and the Production Manager steps in to make the decision which is then binding on both departments.
12
Conciliator
Mediator
Arbitrator
© 2020 Excom Publishers
