Final answer:
An Ombudsperson is the ADR option that allows an organization to choose who will resolve disputes, providing accessible and impartial dispute resolution. This role may increase transaction costs but aims to maintain independence and reflects the community.
Step-by-step explanation:
The alternative dispute resolution (ADR) option that allows an organization to determine who will resolve disputes is the Ombudsperson. This role is often implemented within organizations to assist with the resolution of disputes in an accessible and impartial manner. An Ombudsperson is a designated neutral representative who has the required resources and is seen as a reflection of the community they serve. This position helps to deliver justice in a timely manner and is typically independent of the organization's standard management structure.
When selecting an ADR method, organizations consider the associated transaction costs and conformity costs. Having an Ombudsperson can be effective in reducing conformity costs, as their independence from the organization's management allows for a less biased approach. However, it may also lead to higher transaction costs compared to other ADR methods such as peer review or a single designated officer in terms of time and resources allocated to the position.
Moreover, the decision made by the Ombudsperson does not necessarily bind the parties, which distinguishes it from methods like arbitration, where the arbitrator's decision is often final and binding. Hence, the Ombudsperson approach provides an avenue for resolving disputes while still allowing for further negotiation or escalation if not resolved.