Mandatory Arbitrations In Organizations

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Arbitrations can be very effective at resolving conflict, but only under the right circumstances. Today, many organizations are moving towards putting mandatory arbitration clauses in their employee contracts to prevent employee’ disputes from going to formal court (Murray, 2018). Arbitrations can be used from employment contracts to rental and credit card agreements. This is because arbitration is much more efficient, cheaper and quicker than traditional legal proceeding. With arbitrations, you do not have to wait on a specific court date, so the result can be handled quickly and not bog down the court system (Fallon & McConnell, 2007). Often times, not lawyers are hired, and this can help keep the cost low. Also, the use of evidence is far less in arbitration and, usually, appeals are not permitted, the arbitrator's decision cannot be challenged. This keeps the process quick, cheap, and to the point in hopes to resolve the dispute quickly so both parties can move forward (Carver & Vondra, 1994). Most arbitration results are rendered in writing (Fallon & McConnell, 2007). However, an arbitration should not be confused with a mediation, as it is very similar, however, the final decision with a mediation …show more content…

Organizations can learn a great deal from an arbitration. This can help prevent the issue from happening again. Also, it can help repair and improve relationships between the disputed parties (Carver & Vondra, 1994). Most individuals that have been involved in the arbitration process are satisfied with the overall process. It leaves all individuals as if they have been treated fair (Gunn, 2017). This is largely due to the fact that there is not a certain, set procedure that must be followed during arbitration(Murray, 2017). The options are really endless with an arbitration, and this can lead to a less hostile

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