Question

What are the benefits of the various forms of alternative dispute resolution? Provide 2-3 reasons why you as a business owner or manager would choose to use an alternative dispute resolution format (and name what type of ADR you would choose).

Answer 1

When the parties are unwilling to resort to the formal Court of Law with the litigation or legal proceedings, it can go through Alternative Dispute Resolution (ADR) that suggests various other modes of resolving the disputes including that of the method of Arbitration among others. The benefits of ADR involves that it is a cost-saving method of settling down the disputes because there is no movements to Court involved in the process. Therefore, it also reduces stress of the parties in the disputes. Besides, it gives a scope to both the parties to present their side of the story in an exact manner without require the lawyers to manipulate the stories in a manner that appeases the Court.

Among the private companies, mediation method is one of the most acceptable methods of a successful ADR program that has been successfully undertaken by the Private companies like RBS, KPMG, Shell, General Electric and Merrill Lynch. I would also like to follow the same method, seeking learning from these Giants.

As a Business owner or a manager, apart from the above benefits that could be derived from ADR, I would also resort to it because when there is less rigidity involved, ADR shall be chosen to be more responsive to the needs of the individuals, be it the Employer or the Employee. The scope of dynamism here shall be hence more, to get heard. In addition, my relationships with the party in grievance may more likely be preserved because this dispute redressing system shall help to accommodate the needs of everyone or attempt in suiting to all the parties in the dispute. Hence, the settlement could be relatively in more amicable form, thereby reducing stress among the Organization. In addition, privacy shall also be maintained it shall be a ‘close-door’ activity, without a legal intervention from Court. Overall, it may also save my precious time of going to Court on every Hearing otherwise.