Dispute Summary

Introduction This paper will concentrate on a dispute that occurred in a company where my friend worked. The dispute has been resolved informally and has never resulted in any form of legal process such as grievance, agency complaint, arbitration, or litigation. The management of the company succeeded in using effectively the services of a third-party mediator, applying the so-called Alternative Dispute Resolution (ADR). We will examine the effectiveness of the dispute resolution process, given the seriousness and the length of the dispute.

The dispute was originated due to the computer fraud by the company's employees. The company is a medium-size local grocery store chain. The management discovered that employees of the accounting department were sometimes skipping booking some of the transactions, selling in this way some of the stuff they traded on their own. In this way they developed a business of their own, in fact using the company's premises. When the store manager discovered this practice, he decided to take the fraudulent employees to court, claiming a compensation of the lost revenue and profits.

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However, the chief executive of the branch suggested that the conflict can be resolved without costly litigation, offering that the employees who had perpetrated the fraud compensate the losses. Analysis of the dispute The dispute appeared between several stakeholders in the firm. It evolved on the level employee-supervisor, and in fact involved three separate levels such as rank-and-file employees (accountants), and top management (chief executive officer of the company). The subject was the dispute was the punishment that the employees should get for their fraud.

Dispute Resolution Process The dispute was resolved through the application of Alternative Dispute Resolution (ADR). The management of the firm invited a third-party mediator. The mediating firm, Legal Solutions, opened the mediation process with a joint session where they invited all the participants in the conflict. Namely, all project managers and department heads were present, as well as representatives of the other employees. In these meetings, the mediator also asked the parties’ representatives to put forward their suggestions for the solution of the issue.

Then the mediator once again held meetings with parties separately seeking to inform each party of the other’s solutions. The lead mediator has worked out his own solution for the dispute and offered it for both parties’ consideration. The working proposition was discussed and accepted by the parties. Subsequently, the dispute resolution process ended with signing a detailed written agreement by both parties.

Assessment of the effectiveness of the dispute resolution process

I would say that this dispute was resolved in a very speedy and efficient manner as it was resolved in less than two weeks. The ending of the process without resort to formal procedures like arbitration or litigation can also be considered a success for the project. The process ended with the decision that employees paid the sum that exceeded the losses of the company in the double amount. They benefited from such a decision as their case was not taken to court, and they did not have their reputations marred by the lawsuit.

All of the fraudsters had to resign, but kept a clean record. The company, on its part, saved on the litigation expenses, and received the needed compensation. Conclusion The dispute related to fraud in the grocery store has been resolved effectively and in a timely manner. This effectiveness was reached through the involvement of a third party, a mediator, who brought his expertise and skill to the mediation table opening new channels of communication and helped to achieve a lasting accord among the firm’s employees.

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