2. 1- Common Third-Party Roles
2- Key Choice Points in Third-Party Intervention
3- Challenges Facing Third Parties
4- Strategies for Enhancing Effectiveness of Third-Party Intervention
3. 1- Common Third-Party Roles
Mediation
• Mediation is a procedure whereby a third party
assists disputants in achieving a vol-untary
settlement
Arbitration
• Arbitration is a procedure whereby a third party
holds a hearing, at which time dis-putants state their
position on the issues, call witnesses, and offer
supporting evidence for their respective positions
4. 1- Common Third-Party Roles
The two major types of arbitration are traditional arbitration
and final-offer arbitration.
Traditional Arbitration
• In traditional arbitration, each side submits a proposed
settle-ment to the arbitrator, who is at liberty to come up
with settlement terms to which both sides must agree
Final-Offer Arbitration
• Final-offer arbitration was developed in response to the
chilling-effect problem of traditional arbitration
5. 1- Common Third-Party Roles
Mediation - Arbitration
• (hereafter med-arb) consists of two phases: (a) mediation followed
by (b) arbitration if mediation fails to secure an agreement by a
predetermined deadline. The same third party serves as both
mediator
Mediation - Arbitration
• (hereafter arb - med) consists of three phases
• In phase one, the third party holds an arbitration hearing
• The second phase consists of mediation
• Only if mediation fails to produce a voluntary agreement by a
specified deadline do' the parties enter the third phase, called the
ruling phase
6. 2- Key Choice Points in Third-Party Intervention
Outcome versus Process Control
• Outcome control refers to the ability of the third party to
impose a final, binding settlement on the parties. In
contrast, process control refers to the ability of the third
party to control the discussions, questions, and process of
communication.
Formal versus Informal
• The roles of many, perhaps most, third par-ties are defined
on the basis of some formal understanding among the
disputants or on the basis of legal precedents or licensing
and certification procedures
7. 2- Key Choice Points in Third-Party Intervention
Invited versus Uninvited
•Most commonly, a third party intervenes at the request of one or both of
the principals.
•An example of an uninvited role is a customer in an air-port witnessing a
conflict between a flight agent and a passenger.
Interpersonal versus Intergroup
•Third parties typically intervene in disputes between individuals. In more
complex situa-tions, third-party intervention can occur in disputes between
groups or nations.
Content versus process orientation
Some third-party roles focus primarily on the content of a dispute, such as •
the issues or resources under consideration. Others focus more on the
process of decision making and on the way in which decisions are taking
place.
8. 2- Key Choice Points in Third-Party Intervention
Facilitation, formulation, or manipulation
•Mediators use any of three styles: facilitation, formulation and manipulation.
•Facilitation, also known as communication, is character-ized by mediators who
serve as a channel of communication among disputing parties.
•Formulation involves a substantive contribution to negotiations by conceiving and
proposing new solutions
•Manipulation occurs when the mediator uses his or her position and leverage to
influence the bar-gaining process
Disputant preferences
•What types of mediation are most preferred by disputants?
•Participants in mediation generally preferred
•(a) control over out-come
•(b) control over process
•(c) either substantive rules that disputants would have agreed to before the
resolution process or the rules typically used in court.
9. 3- Challenges Facing Third Parties
♦ Increasing the likelihood that parties reach an agreement if a
positive bargaining zone exists – typical example is the divorcing
negotiation of compensations where the layer fees are saved
♦ Promoting a Pareto-efficient outcome – striving for win – win
agreements by excluding any of the parties “desperation”
influence
♦ Promoting outcomes that are perceived as fair in the eyes of
disputants (need positive and genuine relationship)
♦ Improving the relationship between parties
10. 3- Challenges Facing Third Parties
♦ Empowering parties in the negotiation process – improving parties ability
of reaching settlement by themselves
♦ DE BIASING NEGOTIATIONS:
-Exaggeration of conflict BIAS with
offensiveness and defensiveness behavior exaggeration
- Hostile media BIAS
seeing statements as partially against a side
statistically the parties percept the mediator as partially to
the opponent side
- Overconfidence BIAS
Curious statistics upon own Arbitration final offer preference – over 50%
“Contradiction” between hostile media and overconfidence BIAS ??
11. 3- Challenges Facing Third Parties
♦ Maintaining neutrality
NOTHING GUARANTEES THAT THIRD PARTIES ARE NEUTRAL…….
Also third parties suffer biases – such as broker agreement on each cost
Managers are often involved as a third party – most likely in a conflicts
Where the output is part of their concern and the parties are in different
Way related to them……………….
12. 4- Strategies for Enhancing Effectiveness of Third-Party Intervention
Test your own position
• A good scientist will set up an experiment that includes
"blinds." For example, in testing the effectiveness of a
particular drug, one group of patients might be given the
drug and the other group a placebo or sugar pill
Role-Played Third Party in your Own dispute
• Describe your negotiation situation to some colleagues
who might be willing to play the roles involved. Then take
on the
• Role of a third party in the situation. Try to come up with
a solution which both parties find agreeable.
13. 4- Strategies for Enhancing Effectiveness of Third-Party Intervention
Training in Win- Win Negotiation
• Perhaps no other skill is as important as the ability to
focus on expanding the size of the bargaining zone by
discovering interests and then fashioning value-added
trade-offs.
