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How to Resolve Business Disputes Effectively

Janice Ruiz by Janice Ruiz
November 11, 2024
How to Resolve Business Disputes Effectively
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Conflicts in the workplace are unavoidable in business operations. These issues may emerge from various sources. These include disputes among colleagues, subordinates, or even clients. Assess these matters thoroughly and not delay addressing them, as neglect could lead to costly litigation for the company. Additionally, unresolved conflicts might damage the business’s long-term relationships with suppliers, customers, and shareholders.

Since most internal conflicts negatively affect the business, managers and owners often attempt to suppress them whenever possible. However, this approach can be risky, potentially leading to expensive legal battles or harming the organization’s reputation. Utilizing alternative dispute resolution (ADR) or other innovative resolution techniques effectively handles internal conflicts. Here’s a closer examination of these conflict resolution methods:

Alternative Dispute Resolution

Alternative Dispute Resolution methods are powerful tools for settling organizational conflicts. The most prevalent ADR techniques include arbitration, negotiation, and mediation. These approaches facilitate the peaceful resolution of internal disagreements and enable swift conflict resolution.

Due to their proven effectiveness, courts often suggest utilizing ADR to address disputes before considering a trial. If you detect any unnecessary conflicts developing in your organization, it is advisable to consult a seasoned law firm to assist in resolving them. Contact Ritter Spencer Cheng Business Law Firm for expert guidance on resolving conflicts using ADR.

Competing

Another approach is the competing strategy, which is not typically ideal for workplace disagreements but can be effective in specific circumstances. This style applies when achieving your objective is of utmost importance, while the value placed on relationships is lower. It emphasizes assertiveness over cooperation.

You might adopt a competing style during a crisis. For example, taking control can expedite medical attention if someone is unconscious and disagrees about the next steps. It is also suitable when defending yourself or when you feel threatened. In such scenarios, prioritizing your safety over relationships takes precedence.

However, when employing a competing style in situations where relationships are valuable, such as with a coworker, you may compromise trust, hindering collaboration, creativity, and productivity.

Compromising

Compromise is a conflict resolution technique where both parties willingly give up some of their demands to agree. It’s often called a “lose-lose” approach because neither side fully achieves its objectives.

This method is effective when you are committed to your goal and the relationship is moderate. You value the relationship, but not to the extent of sacrificing your objective completely, as seen in accommodation. For instance, if you and a colleague want to lead an upcoming project, you might compromise by co-leading it or agreeing that you will lead this project while the other takes charge of the next.

Compromising involves thinking broadly and setting aside personal pride, knowing that not all your needs will be met. The advantage is that you and the other party appreciate the relationship and make concessions to reach a beneficial solution.

Collaborating

While compromise often results in both parties losing something, collaboration is a strategy where everyone wins. In collaborative efforts, the objective and the relationship hold equal significance, encouraging you and the other party to join forces to achieve an outcome satisfying everyone’s needs.

Consider a scenario where collaboration is crucial: if an employee is underperforming to the extent that it negatively affects the business. Uphold a strong, positive relationship while also addressing the performance issues.

Viewing the conflict through a lens of collaboration can facilitate understanding the root cause and identifying steps to enhance their performance and the business’s overall health.

Endnote

Business disputes often cause stress and distraction for business owners. Yet, effectively resolving these conflicts can lead to problem-solving and open doors for growth and success. Collaborate with an experienced attorney for litigation or alternative dispute resolution guidance to achieve the best outcomes.

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Janice Ruiz

Janice Ruiz

Janice Ruiz is a paralegal who comes from a long line of legal professionals in her family. When not working or writing, she enjoys watching documentaries about true crime events.

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