Which term describes a formal process of resolving disputes through direct dialogue between parties to reach a compromise without a third party?

Which term describes a formal process of resolving disputes through direct dialogue between parties to reach a compromise without a third party?

• A. Arbitration
• B. Mediation
• C. Negotiation
• D. Avoidance

Answer: (C)

Direct, face-to-face discussion to settle a dispute by reaching an agreement without bringing in a third party. This is negotiation—parties talk, share interests, explore options, and make concessions to arrive at a mutually acceptable solution. The distinction matters because other options involve third parties: arbitration has a neutral arbitrator who makes a binding decision, and mediation uses a mediator to facilitate but does not impose a ruling. Avoidance, meanwhile, involves steering away from the issue rather than resolving it. In HR situations, negotiation is common when employees and employers or vendors work out terms together without an outside decision-maker.

Direct, face-to-face discussion to settle a dispute by reaching an agreement without bringing in a third party. This is negotiation—parties talk, share interests, explore options, and make concessions to arrive at a mutually acceptable solution.

The distinction matters because other options involve third parties: arbitration has a neutral arbitrator who makes a binding decision, and mediation uses a mediator to facilitate but does not impose a ruling. Avoidance, meanwhile, involves steering away from the issue rather than resolving it. In HR situations, negotiation is common when employees and employers or vendors work out terms together without an outside decision-maker.