What's important about dispute resolution?

HR Magazine, Sept, 2008

Managers and employees disagree on lots of issues--including the best way to resolve disputes. In union and nonunion workplaces, speed and satisfaction have long been the gold standard for deciding whether to arbitrate, mediate, litigate or take some alternative route. But, in an article in the July issue of Industrial Relations: A Journal of Economy and Society, employment relations professors John W. Budd at the University of Minnesota and Alexander J.S. Colvin at Penn State University argue for different metrics.

Speed, the authors say, tells little about the effectiveness of the dispute resolution options. Meanwhile, empirical research shows little relationship between speed of resolution and the parties' satisfaction with the outcome.

They recommend that organizations scrap the analytics and seek a balance between efficiency, equity and voice. An efficient system conserves scarce resources, especially time and money. Equity provides a standard for gauging fairness and unbiased decision-making. Voice measures the extent to which individuals on all sides participate in the resolution.

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