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HOW TO...

resolve (or avoid) disputes

by Jodie Warren

Whether it is a compensation disagreement, sexual harassment allegation, or even something as petty as "office envy," disputes in the workplace are commonplace. Often, disputes can be settled without bringing in third parties. But failing to take disputes seriously could be a costly mistake, particularly if disgruntled employees decides to hire a lawyer and settle the matter in court. This is often why disputes are settled on courtroom steps, with the threat of legal costs having been used effectively as a bargaining chip.

An alternative to litigation is alternative dispute resolution, using an arbitrator or mediator. Does your situation require mediation or arbitration? It's a judgment call, said Matti Saar, a director of the B.C. Arbitration and Mediation Institute. "You can try to resolve the issue between the parties yourself, but you have to determine the degree of antagonism," he said.

If there is any money at stake -- even as little as $5,000 -- arbitration or mediation is a sensible step. "Obviously, if you're dealing with a $37 issue, it makes no sense to use arbitration or mediation," said Saar. He added that arbitration and mediation services can be tailored to your budget; you can decide how much money or time you want to spend attempting to resolve your workplace dispute.

When considering arbitration or mediation to resolve a dispute in your company, it's important to first understand the fundamental differences between the two. By using arbitration, you are guaranteed a result, similar to a decision reached in a courtroom. Arbitrators listen to the arguments presented by both parties, and then hand down their decisions. These decisions are not to be taken lightly: in B.C., there is a commercial arbitration statute that reinforces the decisions of arbitrators.

Mediation, on the other hand, does not necessarily guarantee a result or a decision, but instead seeks to bring the parties to a resolution or agreement. The mediator is a neutral party who helps those involved in a dispute reach a mutual understanding. Rather than focusing on a decision, mediation focuses on resolving the differences of opinions. If this process fails, arbitration may be the next step.

If you have deemed it appropriate to pursue arbitration or mediation, Saar recommends taking a few steps before bringing in the appointed person. First, it is a good idea to have an arbitration or mediation clause in any employee contracts. That ensures that in the event of a dispute, the employee knows that a resolution may involve arbitration or mediation. Second, dedicate one person in your staff to research appropriate people for the task and to get the ball rolling. Many arbitrators or mediators specialize in particular industries or fields, such as real estate or employee practices.

The advantages of alternative dispute resolution are many, notes Saar. It can be tailored to your company or situation, can remain a private matter, and is more cost-effective than pursuing resolution in a courtroom. Of course, there are some issues that still have to be pursued through more traditional avenues.

These tips can help prevent disputes from arising in the first place:

 Be clear about the goals and objectives for your business -- have a plan.

 Involve others in the planning, to ensure "buy-in."

 Know your place on the team. What will each person do to ensure that the business plan is carried out? The roles should make optimal use of each individual's talents and skills, and should be flexible enough to encourage growth and creativity.

 Be fair and consistent in your treatment of management and staff. Reward behaviour that enhances the good of the team. Provide guidance and encouragement.

 Encourage an open atmosphere. Are employees aware of the risks and opportunities facing the business?

 Provide a physical infrastructure that helps employees accomplish tasks.

 Put policies, goals and objectives, for the firm and the individual, in writing, and review them periodically.

How to...

get good graphic design
develop partnerships with the Aboriginal community
maximize the impact of your annual report
plan a successful corporate function
foster customer loyalty
resolve (or avoid) disputes
incorporate e-business into your small business
achieve eco-efficiency
choose the right print technology
foster teamwork in a small business
choose a recruitment firm
use coaching to grow your business
recruit Generation X
shape a solid corporate image

 
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