Alternative Dispute Resolution Procedures

Study Notes

Alternative Dispute Resolution (ADR) refers to different employee complaint or dispute resolution methods that do not involve going to court, allowing companies to resolve issues efficiently and fairly without the high costs and potential emotional toll of litigation. This approach helps to foster a positive and productive work environment, where employees feel valued and heard.
Peer-review system: a group of employee representatives and management appointees review employee complaints, weighing evidence, considering arguments, and voting on a final decision. This approach involves active listening, empathy, and open communication, which helps to address conflicts and resolve issues in a timely and effective manner.
Open-door policy: a policy that identifies levels of management above the immediate supervisor for employee contact to settle grievances. This policy encourages employees to share their concerns and feel comfortable approaching higher-level management for support and guidance. As a result, employees are more likely to report issues and concerns, and management can take prompt action to address them.
Ombudsman system: a designated individual provides counsel for resolution of employee complaints. The ombudsman acts as a neutral third-party agent, offering confidential advice and guidance to employees. This approach helps to empower employees to resolve conflicts and address issues on their own, without the need for formal complaints or litigation.

Mediation: an impartial neutral helps reach a compromise decision in employment disputes. Mediators facilitate open communication and negotiation between parties, encouraging them to find mutually acceptable solutions. This approach is particularly effective in resolving issues that involve multiple parties or complex internal conflicts.
Mediator: a third party suggests compromise solutions or recommends concessions to lead to an agreement. Mediators are trained professionals who possess excellent communication and negotiation skills, allowing them to facilitate constructive discussions and positive outcomes.
Arbitration: an arbiter (typically a retired judge) makes a decision that the parties have agreed to be bound by. Arbitration is a formal process where an impartial arbitrator hears evidence and arguments, and then renders a binding decision. This approach is often used in cases where a neutral third-party is needed to resolve a dispute, and a formal decision is required.

Two approaches to disciplinary action: progressive discipline and positive discipline. These approaches are designed to address employee misconduct in a fair and effective manner, while also promoting accountability and employee development.
Progressive discipline: corrective measures are applied in increasing degrees, including oral warning, written warning, suspension without pay, and discharge. This approach involves a graduated system of discipline, which allows employees to correct their behavior before facing more severe consequences.
Positive discipline: early correction of employee misconduct, with the employee taking total responsibility for correcting the problem. This approach focuses on correcting behavior, rather than merely punishing the employee, and encourages accountability and self-improvement.

Discharging an employee should be undertaken only after a deliberate and thoughtful review of the situation. This includes assessing the employee's performance, discussing the issue with the employee, and exploring possible solutions. Discharging an employee should not be taken lightly, as it can have significant legal and emotional consequences.
If an employee is fired, they may file a wrongful discharge suit claiming the termination was “without just or sufficient cause”. It is essential for employers to maintain accurate records and uphold due process when terminating an employee, to minimize the risk of legal action.

Step-review system: a system for reviewing employee complaints and disputes by successively higher levels of management. This approach allows for a layer of review and appeal, ensuring that employee concerns are thoroughly investigated and addressed.
In most step-review systems, the president, chief executive officer, vice president, or HR director acts as the final authority, and this person’s decision is not appealable. This ensures that the decision-making process is fair, efficient, and effective.