Third Party Negotiation

15/03/2021 0 By indiafreenotes

Parties in dispute often need the support of a third party in facilitating the conflict management process when they have become so caught up in their differences that they are no longer able to find constructive ways forward.

A third party is a person or group of people who assists individuals and groups to negotiate and successfully reach agreement. The third party is generally referred to as the facilitator or mediator. Facilitator is a more general term, which can be applied to anybody who guides group processes (discussions, meetings, workshops). A mediator is specialized in conflict management processes, and mediator is therefore the preferred term used in this manual.

These roles include:

  • The opener of communication channels, who initiates communication if it breaks down or facilitates better communication if the parties are already talking, including clarifying misunderstandings and avoiding polarization and escalation;
  • The legitimizer, who helps all parties to recognize that the rights of others are part of the negotiations;
  • The process facilitator, who provides procedural assistance to communication, often including formally chairing meetings. When providing procedural assistance, mediators do not involve themselves in the actual issues (the things under dispute) and do not suggest solutions;
  • The problem explorer, who enables people in dispute to examine a problem from a variety of viewpoints;
  • The agent of balance (or reality), who questions and challenges parties with extreme or unrealistic goals, and through this helps build a reasonable, achievable agreement;
  • The networker, who offers procedural assistance and links the conflict parties to outside experts and resources (e.g. Technical experts, lawyers, decision-makers) that may enable them to draw up acceptable settlement options.

Mediation: Meaning, Role of Mediation

The mediator is a neutral third party, whose job is to facilitate a negotiated solution by reasoning and persuasion, suggesting alternatives to the involved parties.

Mediators are common in labor-management conflicts and in civil court disputes.

Finally, a mediator is a neutral, third party who helps facilitate a negotiated solution. The mediator may use reasoning and persuasion, he may suggest alternatives. Parties using a mediator must be motivated to settle the issue, or mediation will not work. Mediation differs from arbitration in that there is not a guaranteed settlement.

Mediators are most commonly found as third-party negotiators for labor disputes. If a labor union and a company come together to discuss contract terms, a mediator may be employed to assist in ironing out all the issues that need extra attention like vacation days and percentage of raise.

Arbitration: Meaning, Role of Arbitration

Arbitrator is a third party who has the authority for dictating an agreement between the parties.

Arbitration in a negotiation can be requested by the parties or can be compulsorily enforced on the parties by court or contract.

The big advantage of arbitration over mediation is that it always results in a settlement.

Whether or not there is a negative side depends on how “heavy-handed” the arbitrator appears.

If one party is left feeling overwhelmingly defeated, that party is certain to be dissatisfied and unlikely to cordially accept the arbitrator’s decision.

An arbitrator is a third party with the authority to dictate agreement. Arbitration can be voluntary or forced on the parties of a negotiation by law or contract. The arbitrator’s power varies according to the rules set by the negotiators. He might be limited to choosing one of the party’s offers and enforcing it, or he may be able to freely suggest other solutions. In arbitration, there is always settlement.

Often used in the U.S. legal system, an arbitrator is used in lieu of a judge (though, technically, a judge is also an arbitrator!). If two people are, for example, involved in a car accident, they might agree to use an arbitrator in order to determine a fair amount of repayment for damages caused. In entering into the arbitrator situation, both parties agree to let that person make the final decision.

Conciliation: Meaning, Role of Conciliation

Conciliator is a trusted third party whose job is to establish an informal communication link between the negotiator and the opponent. Conciliation is used widely in international, labor, family and community disputes.

In practice, conciliators usually act as more than mere communication conduits.

They also engage in fact-finding, interpreting messages and persuading disputants to reach an agreement.

Comparing its effectiveness to mediation has proven difficult because the two overlap a great deal.

A conciliator is a trusted third party who provides communication between the negotiating parties. This approach is used frequently in international, labor, family and community disputes, and, if you’re a fan of The Godfather movies, it’s the role that Robert Duvall’s character played for the Corleone family. Conciliators often engage in fact finding, interpreting messages, and persuading parties to develop an agreement.

Very often conciliators act only as a communication conduit between the parties and don’t actually perform any specific negotiation duties.

Consultation: Meaning, Role of Consultation

A consultant is a third-party negotiator who is skilled in conflict management and can add his knowledge and skill to the mix to help the negotiating parties arrive at a conclusion. A consultant will help parties learn to understand and work with each other, so this approach has a longer-term focus to build bridges between the conflicting parties.

A real estate agent is an excellent example of a third-party negotiator who is considered a consultant. People who are looking to buy a house might not understand the ins and outs of earnest money deposit, title insurance and document fees. A real estate agent will not only explain all of that, but prepare the purchase agreement and make the offer on behalf of her client.

Consultant is a skilled and impartial third party who attempts to facilitate problem-solving through communication and analysis. Consultant is most likely to have much knowledge of conflict management.

The consultant’s role is not only to settle the issues but also to improve relations between the conflicting parties so that they can reach a settlement themselves.

Instead of putting forward specific solutions, the consultant tries to encourage the parties to learn, understand and work with each other.

And so, this approach has a longer-term focus by building new and positive perceptions and attitudes between the conflicting parties.