The American Arbitration Association, and the Arbitration and Mediation of Disputes

            Conflicts are a part of everyday life, this we know.  However, a dispute as defined by Cahn and Abigail (2007) is “a conflict that has reached a point where the parties are unable to resolve the issue by themselves due to a breakdown in communication, and normal relations are unlikely until the dispute is resolved” (p. 251).  Disputes require the assistance and guidance of a third party for resolution.  There are several alternatives to dispute resolution, but for the purpose of this paper we will focus on two alternatives in particular, arbitration and mediation.  I will also use The American Arbitration Association to examine dispute resolution from the perspective of a professional, established, expert institution in this field.  The American Arbitration Association (AAA) calls itself the “largest full-service alternative dispute resolution (ADR) provider” (American Arbitration Association, 2007).  I will explain the function, role and effectiveness of the AAA, discuss the types of disputes that can be utilized by mediation and arbitration as well as drawbacks to mediation, and conclude by examining how the AAA could be used in my current profession as a Community Relations Coordinator.

            The function of the American Arbitration Association is to “provide services to individuals and organizations who wish to resolve conflicts out of court” (American arbitration association, 2007).  Not only does the American Arbitration Association provide the services of professionally trained and licensed mediators and arbitrators, it also “provides administrative services…[including] the appointment of mediators and arbitrators, setting hearings, and providing users with information on dispute resolution options, including settlement through mediation” (American arbitration association, 2007).  The AAA is not limited to arbitration and mediation services.    It also designs and develops alternative dispute resolution (ADR) systems for corporations, unions, government agencies, law firms, and the courts…[and] provides elections services as well as education, training and publications for those seeking a broader or deeper understanding of alternative dispute resolution” (American arbitration association, 2007). 

This service coordinates dispute resolution plans and policies that are catered to the specific need of an organization. 

            These functions set the role of the AAA as a facilitator of a range of alternative dispute resolution services.  The AAA states that it “aims to move cases through arbitration or mediation in a fair and impartial manner until completion” (American arbitration association, 2007).  Through its online services, case administration services, arbitration and mediator panel, and its education and training services it plays roles in conflict and dispute prevention, management and resolution.  From start to finish, the AAA works to provide the means necessary for dispute resolution internationally.  Its role is to provide “cost-effective and real-world solutions to counsel, business and industry professionals, employees and government agencies, as well as consumers” (American arbitration association, 2007). 

            Cahn and Abigail (2007) describe the process of  arbitration as a circumstance where “a neutral third party considers both sides of a dispute and makes a decision, which is more binding than that of a judge in the legal system if both parties have agreed in advance to abide by the decision (no appeals)” (p. 251).  This is different from mediation because in arbitration the facilitator has more control and involvement in the process, making the decision for the parties involved, although like mediation, the decision is a mutual agreement. 

            Mediation, as defined by Cahn and Abigail (2007), is when “a neutral third party facilitates communication between the conflicting parties so that they may work out their own mutually acceptable agreement” (p. 251).  In both of these situations the parties involved in the dispute agree to the terms of the resolution.  This commitment is mutual and because of that mutual obligation, the agreement is binding and more often than not, successful.  In the case of arbitration, mediation, and specific dispute resolution policy design, the terms are mutual.  It is this that makes the American Association of Arbitration effective.

            The success of the AAA can also be attributed to its “superior case management services, well-screened expert neutrals who undergo continuous training, and the AAA’s rules and regulation procedures that govern the various ADR processes” (American arbitration association, 2007).  To become an American Association of Arbitrators mediator or arbitrator minimum requirements must be met and those qualifications are considerable and the training is ongoing.  An example of a specific service provided by the AAA that speaks to its effectiveness is its ability to assist institutions in education, training, and developing individualized systems that allow those institutions to independently manage disputes from within.  Having plans or systems in place for dispute resolution is invaluable, particularly when they have been coordinated with respect to the organization’s specific needs.  This also helps assist organizations with early dispute resolution.  As the AAA says, “Disputes may be common, but they are not inevitable” (American arbitration association, 2007).

            The AAA “addresses disputes involving, but not limited to, employment, intellectual property, consumer, technology, health care, financial services, construction and international trade conflicts” (American arbitration association, 2007).  The American Arbitration Association listed a range of disputes that can be settled through arbitration or mediation, which I mentioned earlier.  To get more specific, examples of disputes that can be utilized by mediation and arbitration in the construction industry are as follows: construction delays, labor productivity, design and construction defect claims, force majeure claims, acceleration claims, suspension and termination claims, differing site conditions and change claims (Interface consulting international, 2009).  These methods of dispute resolution assist in labor relations, government relations, business to business relations (both local and international), employee relations, and also serve as alternatives to such consequences as work strikes, lost foreign investments, and even war.     

            Although these alternatives to dispute resolution can prevent such negative consequences, drawbacks to mediation do exist.  Mediation has its limits.  Its success is determined by the mediator, each person involved in the dispute, the nature of the conflict itself, and other environmental factors, such as time restraints with regard to the resolution of the conflict or dispute.  A mediator is only as strong as his or her ability to facilitate such a process and this is determined strongly by the amount of training, and experience of the mediator.  The parties involved must be fully involved and willing to not only participate but move through the process and commit to the terms of the resolution agreement.  Both sides of the equation are at the mercy of time restraints, ability, and their own willingness to succumb to the process itself.

            The need for educational instruction and training in communication and dispute resolution in my current career is strong.  This need for dispute resolution is strong due to the competitive nature that exists in my current work environment.  It lacks team work and communication which both then contribute to a lack of motivation among the employees and very little loyalty throughout the company.  This could be changed and improved if given the right tools through education.  Hartenian (2003) states that “teams that have been trained to use conflict resolution skills and communication skills training report higher conflict resolution, goal setting, planning skills and produce higher quality decisions” (Hartman, & Crume, 2007, p. 137).  From what I have observed, learning about the benefits of conflict resolution, and learning what steps to take in the process of conflict resolution would benefit the communication exchange between the restaurant management department and my community relations department of the business.  The power struggles that occur often and the general competitiveness between the departments contribute to interpersonal and procedural issues within the organization.  Hartman and Crume (2007) tell us that “learning to use constructive conflict strategies builds team cohesiveness…and builds trust” which is what my current organizational culture is lacking (p. 138).  With the help of a neutral third party and by finding common ground the two departments may be able to co-exist and come to a mutually satisfying resolution agreement with regard to budgets, marketing activities, and communication.

            Each day we see conflict.  Those conflicts that cannot be resolved without the intervention of a third party are considered disputes.  Arbitration and mediation are effective alternatives to dispute resolution, as seen by the work of the American Arbitration Association, and have the power to be very beneficial in my current career in Community Relations as well as in many other fields due to the mutual nature of the agreements they facilitate.

References

American arbitration association dispute resolution services worldwide. (2007).      Retrieved from http://www.adr.org/

Cahn, D., Abigail, R. (2007). Managing conflict through communication. Pearson Education, Inc.

Hartman, R. L., Crume, A. L. (2007). Public forum mediation: a training exercise for conflict facilitation skills. Industrial and Commercial Training, 39(3), 137-142. Retrieved May 24, 2010, from ABI/INFORM Global. (Document ID: 1343646601).

Interface consulting international, inc. (2009). Retrieved from http://www.interface-          consulting.com/