In: Operations Management
Arbitration is a conflict resolution technique which involves an impartial third party arbitrator to solve the issue between the employees and the employers. It is a quasi-judicial procedure in which both the parties are heard by the arbitrator or a board of disinterest arbitrators. After hearing from both sides they provide their decision. It is a faster and an efficient technique of decision making as it doesn't include court hearings and the same documents, evidences are provided by the attorneys of the parties. In this process, it can be a private affair as confidentiality can be maintained. The expenses in the arbitration method is much lesser than the court trials and the arbitrators fees are less which is borne by both the parties. There is very less chance that the cases won't be solved and the parties don't get a chance to go to the higher judicial courts. The disputes comes to an end with the arbitration with no further proceedings. Even the choice of arbitrator completely depends on both the parties unlike in courts where you cannot choose the jury. It also reduces multiple hearings, lots of paperwork, and some expensive things like buying witnesses as it is very simple and fair.