Alternative dispute resolution or ADR is a substitute to the traditional modes of resolving workplace grievances. The methods are effective for the resolution of conflicts, disagreements, and issues at the workplace without resorting to enlisting courts, arbitrators or attorneys. The principles on which ADR functions of mediation and negotiation. Given that the practice of these two principles is used to reach a compromise suitable to all the parties involved there is a lesser risk for the parties and thereby results in an expeditious resolution.
It is preferable to the traditional litigation method owing to its ability to expedite cases and cost saving; contrary to the traditional method. Additionally, the added favorable factor which makes ADR more preferable is the equal consideration given to the interests of both parties instead of the outcomes built on the positions of parties involved. This is possible due to the style of dispute resolution used in ADR which can be tailored to the needs of the parties or the nature of the dispute in addition to the third party involved (Stipanowich, 2004).
The tilt towards ADR is partially a result of dual factors like institutional pressures and human resources strategies looking towards nonunion methods or procedures (Colvin, 2003). The use of mediation has increased significantly due to the efficiency, cost saving and other benefits that it provides. There are numerous programs for the resolution of the dispute without resorting to adjudication. Specialist human resources managers and recognized trade unions have been found to be positively associated with the more private forms of alternative dispute resolution. Participants have shown to prefer control over the outcomes, control over the process and rules-based process in mediation (Shestowsky, 2004).