As the business environment grows more complex so do the relationships of an enterprise. The external relationships now encompass more relationships that cross borders. These expanded relationships present a greater opportunity for conflict and disagreements. This results in litigation for resolution when normal negotiation processes fail. As a result, organizations are finding their litigation costs dramatically escalating as well as time to resolution. As an alternative, “Alternative Dispute Resolution (ADR) processes have become more attractive as a way to resolve conflict while keeping the time and costs of resolution to a minimum. GE faced this exact problem and developed an innovative approach to ADR.
Construct a case analysis that addresses the following: Why did GE adopt an ARD process? What advantages did GE see in ADR? What are some possible reasons managers would resist ADR? What are the advantages of an Early Dispute Resolution Process (EDR) over and ADR? What other thoughts do you have regarding ADR or EDR?
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