Alternative Dispute Resolution

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Student No: 2483708

How effective is mediation as a way of resolving conflicts within the workplace with regards to preserving future working relationships?

  For employers, their employees are the most important resource for their business, and contended employees are likely to be the most productive. On the other hand, for employees, their employment affords not merely a source of income and means of family support, but also their sense of character. Quality of life for an employee thus requires a harmonious balance between the demands of the home and the demands of the workplace and a readily available and effective means of resolving any differences at the workplace.

  New employment laws in the United Kingdom and the European Union have redefined the rights and responsibilities of both employers and employees. These new laws are a reflection of the changing social attitudes of our society and it is often a lack of understanding of these changes that leads to conflicts in the workplace. A clear example of this can be seen in the introduction of internet and the wide use of sites such as ‘Facebook’ and ‘Myspace’ within a workplace and the problems it causes for certain individuals. Resolving disputes, which arise in the workplace, takes time and energy, but it is certainly preferable to the alternative of a no resolution. Conflicts are simply a fact of life. They will occur anytime when two or more people interact and cannot be wholly eliminated but can be managed. The results of a conflict can be thus either positive or negative, depending on the attitudes of the individuals. The growing effect of problems that are ignored or unresolved is the gradual decline into inefficiency, poor morale or even the failure of the business. However on the other hand, successful conflict resolution increases overall effectiveness and keeps the business competitive. The question we must ask ourselves now is, how do you successfully resolve conflicts that arise in the workplace?

  The basic idea of a dispute resolution system is that high cost methods of dispute resolution, such as arbitration and litigation, are replaced whenever possible by cheaper methods, such as negotiation or mediation. In April 2003, the Employment Act 2002 came into force. One of its key aims was to reform the employment tribunal procedures and workplace dispute resolution mechanisms in response to the rising number and cost of employment tribunal claims. The figures pointed out that 64% of applications to employment tribunals came from employees that had not tried to resolve their disputes directly with their employers. In an ideal world, if two people have a dispute, they meet face to face and try to resolve the issue. When that is not possible, they call in others for help. These people could be lawyers, friends or professional mediators. Mediation is the most confidential and informal way of resolving a dispute. A conflict that is negotiated or mediated is more likely to result in repaired or renewed relationships and this could be seen as a win-win situation for an employer. In the workplace, this means a minimum of disruption and loss of productivity. In respect of a dispute going to a employment tribunal or court, where one party’s reputation is damaged and the relationship is severed, it is clear to see that mediation in the workplace seems more of a better choice for an employer. By choosing mediations, an employer has control over the outcome where both parties can engage in the process with the high expectation that they can reach an outcome they can live with. On 1st October 2004, a new 3-step process for resolving disputes in the workplace came into effect, giving new rights for employers and their employees. An effective workforce is an important part of a successful business. It is important to make sure that employees use their time and energy in conducting their duties and not being diverted away from it. Conflicts and disputes are examples of diversions and should be avoided at all cost or resolved. The process of having an effective workforce involves a number of stages. It starts with the recruitment stage. The second stage involves the staff having proper contracts of employment in order to avoid conflicts that could arise later on and lastly knowing the law in order to stay on top of things that needs to be done. For example, the Employment Act 2002 brings in new compulsory statutory grievance procedures that employers and employees must use before starting a claim in an employment tribunal. In January 2003, the government also accepted recommendations of the Employment Tribunal System Taskforce, which encourages the promotion of mediation schemes within companies as part of their development of internal grievance and disciplinary systems. The government has issued revised guidelines for disputes to be heard before the employment tribunals.

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  Alternative dispute resolution has been used in employment disputes for over 100 years, dating back to 1896 when the Government set up the first voluntary conciliation and arbitration scheme. Apart from a name change (Conciliation and Advisory Service in 1972) the basic service has been the same. In mid-1970’s, an independent council with statutory control was set up and re-branded as the Advisory Conciliation and Arbitration Service (ACAS). During the industrial unrest during those times with regards to the miners strike and the dockers’ walkouts, industrial mediation became more popular and the idea that people could talk and ...

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