In-House Solution

• A business may choose to try to solve a conflict in-house because it may be the quickest and easiest way to deal with the situation. All steps will be taken by the direct supervisor of the employees or by a human resources representative -- or both. Depending on the severity, like sexual harassment, higher levels of management may get involved. In some cases, it may be the duty of the direct supervisor to begin the process of conflict resolution. In others, HR might take the lead. Refer to your company's specific policy for specific instruction.
  
  

Mediator

• Mediation is a tool usually used when conflicts cannot be dealt with in-house or have not and cannot be settled by managers or the HR department. The company will hire a conflict resolution mediator -- specialists in this field either operate independent firms or are extensions of law firms -- who will come in and work with both sides to come to an agreement.
  
  

Why In-House

• Businesses may choose in-house simply for its speed and to save money by not hiring a mediator. Another preference to the in-house approach is because the situation will be handled with a manager's personal insight about the conflicting parties, which may help reach a successful resolution. The manager will have to recognize the conflict, identify the problem and work with both sides to reach an amicable resolution.
  
  

Why a Mediator

• Conflict resolution mediators are usually trained in law and psychology, both of which are useful tools when meeting with conflicting employees. They are considered to be skilled in opening lines of communication between two sides. Having an outside party mediate a conflict may help the situation, since mediators are a disinterested third party without prejudices and influence. Furthermore, mediation can be used as a signal to the conflicting employees that this is a last resort to resolve the issue and if none can be reached, the next step may be termination of employment.