Society For Human Resource Management (SHRM) Certified Professional Practice Exam

What makes arbitration and mediation similar?

1. The processes are both non-binding

2. A third-party helps

3. Majoring vote makes the decisions

4. Persuasion is the key to resolving problems

The correct answer is: A third-party helps

Both arbitration and mediation involve the participation of a third party to help resolve disputes. In mediation, the third party, often referred to as a mediator, facilitates communication and negotiation between the parties to help them reach a mutually agreeable solution. The mediator does not make a decision but rather assists in guiding the parties toward a resolution. In arbitration, a third party, known as an arbitrator, listens to the evidence and arguments presented by both sides and makes a binding decision on the matter. While the roles of the third party differ in terms of the power and authority they wield, their involvement is a fundamental characteristic that both processes share. This distinction underscores the collaborative nature of mediation as opposed to the more authoritative role of arbitration, but both processes rely on a third-party facilitator to help resolve conflicts.