Dispute Resolutions and Crisis/Management

Assignment No.1 (Finals)

Discuss the following:

ARBITRATION

Arbitration is a form of alternative dispute resolution where parties agree to submit their
dispute to a neutral third party called an arbitrator. The arbitrator hears both sides of the
argument, considers evidence and arguments presented by the parties, and renders a final
decision known as an arbitration award. The process is generally less formal than litigation, and
the arbitrator's decision is usually binding on the parties involved. Arbitration is often preferred
when parties want a quicker and more cost-effective resolution than going to court.

MEDIATION

Mediation is another form of alternative dispute resolution that involves a neutral third
party called a mediator. The mediator's role is to facilitate communication and negotiation
between the parties and help them reach a mutually acceptable resolution. Unlike arbitration,
the mediator does not have the power to make a decision or impose a settlement. Mediation is a
voluntary process, and the parties have control over the outcome. It is often used in situations
where preserving the relationship between the parties is important or when there is a desire for
a creative and customized solution.

LITIGATION

Litigation refers to the process of resolving disputes through the court system. It involves
filing a lawsuit, presenting arguments and evidence in front of a judge or jury, and obtaining a
final judgment. Litigation is typically more formal and adversarial compared to arbitration or
mediation. The decision made by the judge or jury is binding and enforceable. Litigation is often
used when other methods of dispute resolution have failed, or when legal precedent or a
specific legal outcome is desired. It can be a lengthier and more expensive process compared
to alternative dispute resolution methods.

2. What is Crisis Management?

Crisis management is a strategic process for organizations to effectively respond to and

navigate through unexpected events and emergencies. It involves proactive and reactive
measures to handle, recover, and learn from crisis situations. The primary goal is to minimize
potential damage, protect reputation, and ensure business continuity. Crisis management teams
consisting of key stakeholders coordinate and implement crisis response plans. Effective crisis
management is crucial for safeguarding reputation, maintaining stakeholder trust, and ensuring
timely recovery. It requires a proactive approach, open communication, coordination, and
adaptability to handle unexpected challenges effectively.
3. What are the Functions and objectives of Crisis Management?
Functions of Crisis Management Objectives of Crisis Management
1. Prevention  Resolve without further incident.

The prevention phase focuses on identifying

and mitigating potential risks before they
escalate into crises. This includes developing
crisis management plans, conducting risk
assessments, and training employees on
crisis response procedures.

2. Mitigation  Safety of all participants.

This phase focuses on reducing the impact of

a crisis if it does occur. This can involve
measures such as developing backup plans,
investing in security measures, and training
employees on crisis response procedures.
3. Preparedness  Apprehension of all perpetrators.

The preparedness phase involves developing

and testing crisis response plans. This
includes identifying key stakeholders,
assigning roles and responsibilities, and
securing resources.

4. Response  Accomplish the task within the

framework of current community
The response phase is activated when a standards.
crisis occurs. The crisis management team
will assess the situation, implement the crisis
response plan, and communicate with
stakeholders
5. Recovery

The recovery phase begins after the crisis

has been resolved. The crisis management
team will assess the damage, develop a
recovery plan, and implement the plan.