Conflict Resolution Processes (DP IB Business Management): Revision Note

Conciliation involves an independent mediator supporting negotiation and compromise between conflicting groups

Arbitration involves an independent mediator making a decision to resolve a dispute on behalf of conflicting groups

• Non-binding arbitration decisions can be accepted or ignored by conflicting parties

• Binding arbitration decisions involve a compromise that must be accepted by both parties

• Pendulum decisions are a binding decision that makes no compromise - they declare entirely for one party

In 2019 Prospect union and airports company Hial invited the Advisory, Conciliation and Arbitration Service (Acas) to conciliate in a pay dispute

Air traffic controllers increased pay demands were at odds with Hial's refusal to increase wage budgets

Employee participation involves giving authority to workers to take on responsibilities and have some level of authority in the organisation

Examples include teamwork, suggestion schemes, quality circles and worker panels

Animation studio Pixar has a successful culture of collaboration, which enables teams to work together on complex creative projects

Employees are encouraged to share ideas, actively participate in the creative process and make decisions

Industrial democracy involves workers having significant involvement in the decision-making process

Worker-owned businesses and worker co-operatives have strong commitments to industrial democracy

Workers at the UK's John Lewis Partnership influence how the business is run through their elected representatives in local forums

Staff, known as partners, also receive a generous share of business profits

An agreement with trade union members not to take strike action when workplace conflict arises

These agreements can improve the reputation of a trade union

• Builds trust and increases the likelihood of businesses being willing to negotiate

An "Olympic truce" was declared following meetings between unions including the National Syndicate of Air Traffic Controllers (SNCTA) and the French Directorate General of Civil Aviation

Despite ongoing conflict, French air traffic controllers' unions agreed that no strike action would take place until after the 2024 Olympics in Paris 

A business agrees to negotiate with one, rather than multiple, trade union organisations to resolve conflict

After refusing for many years, Starbucks started, in 2023, to negotiate with the Starbucks Workers United union

Early agreements include a $20 per hour starting wage, a 32-hour minimum working week for full-time employees and credit card staff tipping at all stores