Which term refers to resolving workplace issues through a neutral third party?

Study for the NCEA Level 1 Business Studies Test. Engage with interactive questions, complete with hints and detailed explanations. Prepare effectively for your exam!

The concept of resolving workplace issues through a neutral third party is best described by the term mediation. In mediation, a facilitator assists both parties in reaching an amicable solution by promoting open communication and helping to clarify issues without imposing any decisions or outcomes. The mediator’s role is to support dialogue, ensure fairness, and guide the discussion in a constructive manner, allowing both sides to express their views and work towards a mutually acceptable agreement.

In contrast, arbitration involves a binding decision made by an arbitrator after hearing both sides, while negotiation is a direct discussion between the involved parties aiming for a voluntary agreement without outside assistance. Facilitation is more focused on guiding a group discussion without necessarily involving personal disputes, and tends to be broader in its application compared to mediation. Therefore, mediation is specifically tailored to help resolve disputes with the aid of a neutral third party, making it the most appropriate term for this context.

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