mediation of organisational conflicts

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    MEDIATION OFORGANISATIONAL CONFLICTS

    Anca Monica ARDELEANU, LLDAssociate Professor

    University of BucharestFaculty of Business and Administration

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    THE NATURE OF CONFLICT Conflict is an inevitable part of life.

    Violence often erupts out of conflict, as can beseen from significant events in history.

    War has been around since the dawn ofhumanity, resulting from differences concerningideals, land, or religion.

    Family life also presents its own unique conflicts,since you often have a houseful of people withdifferent needs and agendas.

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    THEORIES ABOUT CONFLICT

    Nicolo Machiavelli, Thomas Hobbes, Emile

    Durkheim, Karl Marx, Max Weber, Ralph

    Dahrendorf, David Lockwood, Lewis Coser,

    Talcott Parsons, Goldman Schlenker, Johnson

    Pruitt etc

    60s controversy between the new theories

    (conflict is positive) and the old theories (conflict

    is negative)

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    BELIEFS ABOUT CONFLICT

    Conflict is generally negative and destructive

    It is better to ignore small problems Recognizing conflict can make it increase

    Problems will work themselves out

    Conflict is the result of bad management There are usually single, simple causes of conflict

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    TYPES OF CONFLICT

    Intrapersonal conflict

    arises from within oneself.

    E.g. a dilemma, a conflict resulting from guilt, or a

    conflict between ones ''real'' self and the "ideal"

    picture of himself/herself.

    Interpersonal conflict

    occurs between two or more people. it usually erupts over differing beliefs, psychological

    needs, and/or resources.

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    TYPES OF CONFLICT (2)

    Intragroup conflict

    arises within the context of a larger group but takes

    place between two or more people.

    E.g. people working together in support of a politicalcandidate may differ about the ways they want to run

    the campaign.

    The conflict is interpersonal (in that it's between two

    or more people), but it's also a part of a single, largergroup. Intragroup conflict is complex to solve because

    it's not merely a matter of satisfying the needs of the

    two participants; you additionally are affecting all the

    other members of this particular group

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    TYPES OF CONFLICT (3)

    Intergroup conflict arises out of conflict between two or more groups.

    Gang warfare is a good example of intergroup conflict.

    In this case, the participants of one group are unified

    in their opposition with another group.

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    ADVANTAGES OF CONFLICT

    Diffuse more serious conflicts

    Stimulate search for new facts or solutions Enhance relationships

    Increase cohesiveness

    Conflict should be managed not eliminated !

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    DISAVANTAGES OF CONFLICT

    Time consuming

    Disrupts progress/ problem solving Detracts from job at hand

    Keeps people apart; if unresolved

    Poor quality, lowers productivity Reduces team effectiveness

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    CAUSES OF CONFLICT (SOURCES)

    a. objectives

    b. necessities/needs

    c. Interestsd. values

    e. communication

    f. power, status, role

    g. not following the rules

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    b. Conflicts caused by the

    necessities / needs

    MASLOWS HIERARCHY OF NEEDS

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    c. Conflicts caused by the interests

    NEEDS INTERESTS

    NEEDS

    fundamental and permanent

    INTERESTS

    passing and superficial

    -------------------------------------

    NEED real cause of the conflict

    INTEREST expressed position over the conflict

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    d. Conflicts caused by the values

    Every person has its own value system

    Different persons different values

    The value is the main criteria to qualify a

    situation or a person

    Values govern all the activities

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    e. Controversies caused by

    communication

    The absence of the communication

    One of the parties does not tell to the other what

    he/she feels or thinks regarding the object of the

    dispute

    The bad communication

    The feelings or the thoughts are not expressed clearly,

    completely and this leads to misunderstandings andinterpretations

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    f. Conflicts caused by

    power, status or role

    self esteem is the affective component of self

    image - our opinion about ourselves

    The denial and minimization of ones

    accomplishments and the systematic critics of

    ones action can lead to conflict

    The reaction of the criticized person depends on

    the level of the self esteem

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    g. controversies caused by not

    following the rules

    All kinds of human activities and behaviors aresubject to rules

    Rules establish behavioral patterns in order tomaintain social order

    Not following the rules leads to disrupting thesocial order and, as a consequence, to conflict

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    ORGANISATIONAL CONFLICT

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    HOW WE REACT TO CONFLICT

    Avoidance

    Denial Accommodation

    Aggression

    Compromise Collaboration

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    a. Reaction to conflict

    -Avoidance -

    can be either positive or negative

    avoidance is a good tactic when the issue is notthat significant to either of the parties.

    It's a bad choice when one party is avoiding

    simply because he/she is afraid of the

    consequences or others' reactions.

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    b. Reaction to conflict

    - Denial -

    is more intense than avoidance, since it means

    not even recognizing that a conflict exists.

    denial is rarely a useful tactic one party often

    ends up deceiving herself/himself as well as

    others

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    c. Reaction to conflict

    -Accommodation -

    Accommodating is giving in, going along with thewishes of the other party even when one doesn'twant to.

    Like other ways of dealing with conflict, it can beeither positive or negative.

    It is wise not to accommodate on issues that aresignificant to you.

    Giving in is only a useful tactic when you're notgoing to suffer serious physical or emotionalconsequences as a result.

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    d. Reaction to conflict

    -Aggression- Launching an attack usually is not productive, it does

    little to preserve a relationship

    "winning the battle, and losing the war

    People who resort to aggression do not have a positive

    view of conflict they think of conflict as a contest where there can be only one

    winner

    they think of conflict as a struggle between two sides, and onlytheir side is the right one.

    An aggressive person is most likely afraid to listen to theother side because he might not be able to control theoutcome, and attempts to take control of the situationby forcing his will onto others. He may also be afraid ofsomeone thinking he is wrong.

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    e. Reaction to conflict

    - Compromise-

    Compromise is an effective way to resolve a

    conflict, but only if you are prepared to have

    some, not all, of your needs met.

    communicating the real needs is essential (e.g.

    the mother-son conflict over the last orange)

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    f. Reaction to conflict

    - Collaboration -

    Collaboration is the best way to solve a conflict

    and preserve a relationship

    When parties collaborate on a solution, they sit

    down and treat each other as partners in the

    problem

    They listen to each other in order to define the

    problem and clarify what each party's interestsare

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    BASIC SKILLS FOR CONFLICT

    RESOLUTION

    1. Manage anger

    2. Listen actively

    3. Avoid assumptions

    4. Find something on which to agree

    5. Be cautious with criticism

    6. Negotiate (more later!)

    7. Get help

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    CONFLICT PARTIES

    it is important to identify all of the people

    involved in the conflict, and their degree of

    involvement

    frequently the relatives of the parties involved

    are part of the situation

    sometimes people can be completely mistaken

    about the source of the problems they haveattributed to some other individuals.

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    a. Primary parties

    are those who are in direct confrontation over

    incompatible goals, and are in structural

    positions such that they come into conflict with

    each other

    Husband/wife ; two neighbours ; employer /

    employee etc.

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    b. Secondary parties

    Secondary parties are those who have an indirect

    stake in the outcome of the dispute, but do not

    feel directly involved.

    Extended families are often secondary parties,

    because they have an emotional investment in

    the conflict, and are frequently involved insupporting their relations who are the primary

    parties.

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    ISSUES

    it is crucial for the parties to be clear on what the

    issues are

    When the parties realize that they are in a

    conflict, issues have usually proliferated from the

    original cause of the dispute. This means that the

    presenting problems may actually be symptomsrather than causes.

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    ISSUES

    Facts-based

    Values-based

    Interests-based

    Relationship-based

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    THE DYNAMICS OF CONFLICT

    (STAGES)

    0. No conflict

    1. Latent conflict

    2. Emergence3. Escalation

    4. Hurting (Stalemate)

    5. De escalation6. Settlement / Resolution

    7. Post conflict Peacebuilding and Reconciliation

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    Stage 1LATENT CONFLICT

    It exists whenever individuals, groups, organizations,

    or nations have differences that bother one or the

    other, but those differences are not great enough to

    cause one side to act to alter the situation. the seeds of conflict may exist for long periods of

    time without actors being aware of them.

    Sometimes, however, the conflict never emerges. Ifdestructive conflict has not yet emerged, steps can

    be taken to minimize its potential - "conflict

    prevention"

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    Stage 2EMERGENCE

    After a conflict has remained latent for sometime, if the underlying grievances or frustrations

    are strong enough, a "triggering event" marks the

    emergence or the "eruption" phase of the

    conflict.

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    Stage 3ESCALATION

    an increase in the intensity of a conflict and in theseverity of tactics used in pursuing it

    changes within each of the parties, new patterns ofinteraction between them, and the involvement of new

    parties in the struggle more people tend to become involved

    parties begin to make bigger and stronger threats andimpose harsher negative sanctions

    Violence may start, or if violence has already occurred itmay become more severe and/or widespread as thenumber of participants involved in the conflict increases,and a greater proportion of persons engage in fighting

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    Stage 4HURTING (STALEMATE)

    Once conflicts escalate for awhile, they often reach a

    stalemate: a situation in which neither side can win, but

    neither side wants to back down or accept loss either.

    Despite realizing that the conflict is going nowhere, it isoften difficult for parties to tranform the nature of the

    conflict and consider a settlement.

    Eventually, conflicts reach a point at which a sort of

    equilibrium sets in, in which neither side is getting anycloser to achieving its goals and which no one is happy

    with the situation.

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    Stage 5DE-ESCALATION

    (NEGOCIATION)

    Conflict de-escalation and transformation are often also

    associated with reduced grievances, at least for

    members of one side. This change occurs as relations

    between the adversaries change, in the course of thestruggle. Thus, some rights that one party sought may be

    at least partially won, and that party's goals are then

    accordingly softened.

    Goals may then be recast so that they may be achievedwith reasonable means. They may even be recast so as to

    provide mutual benefits for the opposing sides

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    Stage 6SETTLEMENT

    After de-escalation, neither side's new goals

    include the destruction of its adversary.

    If most or all of the underlying causes of the

    conflict are finally remedied, the conflict may be

    resolved permanently or at least for a long time.

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    Stage 7POST CONFLICT

    PEACEBUILDING AND RECONCILIATION

    even after a settlement is reached and a peaceagreement is signed, this is by no means the end of theconflict.

    at the peacebuilding stage, outside actors can play animportant role in monitoring the agreement anddemobilization efforts.

    there are four aspects of reconciliation:

    truth (coming to acknowledge there is some merit to the other

    side's interpretation of events), justice (gaining redress as a means of putting the past to rest),

    regard(forgiveness on the part of victims), and

    security(expectations of peaceful coexistence)

    C O CO C O

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    THE EFFECT OF CONFLICT ON

    ORGANIZATION PERFORMANCE

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    Pray one hour before going to war,

    Two hours before going to sea,

    Three hours before getting married,

    And four hours before going to court.

    Indian Proverb

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    PHASES OF MEDIATION

    Basic stages or phases that most

    mediations go through

    Phases are guideposts about progress, but

    do not have to occur in a specific order orat a specific time

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    PHASE 1: ORIENTATION TO MEDIATION

    AND INITIAL IDENTIFICATION OF ISSUES

    help the parties understand what mediation is

    and to provide them an opportunity to ask

    questions about the process

    identify the basic issues in the conflict so the

    initial agenda can be set and the mediator can

    determine whether mediation is appropriate in

    this case

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    OPENING COMMENTS

    To accomplish the first purpose the mediator

    makes an opening statement that explains

    mediation and the mediators role in the

    mediation

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    THE OPENING STATEMENT

    Introductions of the mediator and parties

    Mediation is a voluntary process

    Parties retain all decision-making control in the conflict

    The mediator does not act as judge or fact-finder.

    The goal in mediation is to help the parties constructivelymanage the conflict

    Mediation is a confidential process (and what the limits ofconfidentiality are, if any)

    A general overview of the mediation process (in terms of

    general agenda) Questions to see whether the parties understand the process

    In addition, some mediators like to include a discussion ofguidelines for behavior (e.g., no name calling, no interrupting,etc.).

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    INITIAL IDENTIFICATION OF ISSUES

    The mediator asks each party to briefly explainhis or her understanding of the conflict and what

    needs to be addressed.

    From this introduction, the mediator can identifythe basic issues, see where the parties differ intheir understanding of the conflict, and consideran agenda for this conflict.

    COMMON PROBLEMS

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    COMMON PROBLEMS

    WITH PHASE 1

    Parties express discomfort with the nature ofmediation.

    Parties argue for positions or what has to be

    done before issues are defined. The parties identify separate or mutually

    exclusive agendas and there is no agreement onhow to proceed.

    Parties are unable to discuss the conflict at allbecause of strong emotions.

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    PHASE 2: UNDERSTANDING THE

    PARTIES INTERESTS AND EMOTIONS

    the discussion needs to move to

    understanding the ways that parties see the

    conflict. There are two strongly interrelated

    aspects of this their interests, or underlyingconcerns, and their emotions, or how they

    feel about the conflict and what it will take to

    make it better for them.

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    EXPLORING INTERESTS

    An interest is an underlying concern that

    someone has, usually a concern that

    motivates them to argue for a particular

    action, outcome or position.

    COMMON PROBLEMS

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    COMMON PROBLEMS

    WITH PHASE 2

    Parties are not ready to deal with the conflict

    Parties are so distrustful they will not share

    anything other than facts

    Parties want to focus only on the solutions

    without discussing their view of the conflict

    Parties insist the other see it their way

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    PHASE 3: GENERATING OPTIONS

    In many cases the parties want to move beyond

    understanding the conflict and work toward

    agreeing on some action or orientation to the

    relationship. Some people think of this as

    problem-solving, but we adopt a broader

    perspective. We think of it in terms of optionsfor making the situation better.

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    BRAINSTORMING

    Brainstorming (putting forth ideas without

    criticizing them).

    The parties then create a pool of possible

    options.

    The parties clarify options if there is some

    confusion.

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    COMMON PROBLEMS IN PHASE 3

    The party needs professional therapeutic help

    Parties are psychologically unable to

    disconnect from their positions

    Offers are antagonistically rejected by the

    other.

    Options are extreme and unworkable.

    Parties are unwilling to propose any options.

    Parties are pessimistic about all options.

    PHASE 4: ASSESSING OPTIONS AND

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    PHASE 4: ASSESSING OPTIONS AND

    DECIDING ON ACTIONS

    In this phase, the parties talk about the worth

    and feasibility of the options that have been

    generated and discussed. Then, they decide on

    actions.

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    SELECTION PROCESS

    The selection process involves discussing the

    criteria for acceptable options (these come from

    explored interests and facilitated reappraisals).

    Then options are selected based in how well they

    meet those criteria.

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    FLEXIBILITY

    There can be several options that are selected

    There can be options that are joint and

    individual.

    There can be options that are immediate or

    future.

    There can be options that are incrementally

    enacted. There can be options that are piloted pending

    final agreement.

    COMMON PROBLEMS

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    COMMON PROBLEMS

    WITH PHASE 4

    The most common problem is that parties are

    unwilling to make decisions, either individually or

    jointly.

    Parties want to force the other to see the

    relationship a certain way.

    Parties are unwilling to commit to specifics in

    terms of joint action and decision.

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    THE COST OF CONFLICT

    - Over 65% of performance problems result from strainedrelationships rather than skill or motivation problems

    - The amount of managerial time spent dealing withconflict was 30% in 1976 and 42% in 1996 AND 54% in

    2006- Amount of time wasted during conflict can be as high as

    50% of gross salary, defending, avoiding & venting

    - Chronic unresolved conflict is a decisive factor in 50% of

    people leaving, and 90% of involuntary terminations- Projected costs should include estimates of wastedtime, reduced decision quality, loss of skilledemployees, restructuring, sabotage, loweredmotivation, lost work time, and health costs, loss of

    innovation & initiative.

    THE ADVANTAGES OF ALTERNATIVE

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    THE ADVANTAGES OF ALTERNATIVE

    DISPUTE RESOLUTION The most telling obstacle to pursuing alternative

    dispute resolution may simply be inexperience-

    the fear of any process with which one is

    unfamiliar.

    Therefore the first step in selling alternative

    dispute resolution to the other side is education:

    reviewing the primary advantages of alternativedispute resolution over litigation and examining

    how they apply to the case at hand.

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    a. PROMPTNESS OF RESOLUTION the congestion and inefficiency of many court

    systems

    instead of dealing with judges with little

    knowledge of, or interest in cases, parties in anmediation proceeding are assured of theundivided attention of a neutral who is focusedon having a continuous process and a prompt

    disposition years-long litigation vs. days/weeks long

    mediation

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    b. CERTAINTY OF RESOLUTION A judicial decision on the merits is frequently an

    all-or-nothing resolution and is always the

    proverbial roll of the dice, even if a party feels it

    has the best facts, law and counsel.

    Early and prompt dispute resolution can

    eliminate this risk the parties know what theresult of their compromise will be

    c CREATIVE BUSINESS-DRIVEN

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    c. CREATIVE BUSINESS-DRIVEN

    SOLUTIONS TO LEGAL PROBLEMS the parties have the ability to fashion win-win

    resolutions reflecting business objectives and

    priorities rather than relying on a court whichmay decide based upon more technical or narrowissues.

    parties can and often do go beyond the particulardispute at issue to resolve broader concerns.

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    d. SUBSTANTIAL COSTS SAVINGS

    Early settlement can reduce litigation expense

    most significantly

    Also there are other kinds of costs relationship,

    productivity etc

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    e. ACCESS TO A NEUTRALEXPERT judges rarely have experience in some specific,

    practical matters

    this makes it much easier and quicker to choose aneutral expert

    it enables counsel and the parties to be able tosave valuable time

    e FLEXIBILITY AND CONTROL

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    e. FLEXIBILITY AND CONTROL

    BY THE PARTIES

    The parties and their counsel are free to choosean alternative dispute resolution procedurewhich they agree is most suitable to their

    situation, time frame and more intangible factorssuch as their corporate or individual personalities

    The parties and their counsel then have the

    ability to tailor and refine the particularprocedure chosen so that it fits their needs andpreferences.

    f IMPACT ON MANAGEMENT

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    f. IMPACT ON MANAGEMENT

    OF THE BUSINESS While mediation requires some concentrated time and

    attention from management, the amount expended will

    pale in comparison to the intrusion of full-blown

    litigation into the real business activities of the parties

    Litigation is draining not only to management and in-

    house counsel, who surely have better things to do, but

    its potential adverse consequences may be reportable toshareholders, potential acquirers of a company, or

    financing institutions, etc

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    g. PRIVACY AND CONFIDENTIALITY Mediation can allow for privacy in resolving a

    dispute, thus avoiding a public record and

    judgment and thereby minimizing the potential

    impact on other or future disputes. Quite importantly, the appropriate mediation

    agreement can minimize disclosure of

    embarrassing or sensitive confidential businessinformation.

    h PRESERVATION OF

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    h. PRESERVATION OF

    BUSINESS RELATIONSHIPS

    This is clearly relevant in those situations where

    mediation arises from an outstanding contractual

    relationship.

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    QUESTIONS..

    AND

    THANK YOU !