Final answer:
Arbitration can resolve conflicts involving multiple staff members by having an impartial third party make a decision that is binding on all parties involved.
It is especially useful in situations with collective dilemmas and where compromise or internal negotiation fails to provide a resolution.
Therefore, the correct answer is: option b). A conflict involving three or more staff members
Step-by-step explanation:
Arbitration is a process where an impartial third party, known as an arbitrator, decides on a dispute. In workplaces, conflicts can arise due to various reasons such as differences in beliefs, values, opinions, and actions.
When these conflicts involve multiple staff members, they can create a collective dilemma where individual interests may not align with the group's mutual goals, leading to reduced productivity and team morale.
Compromise is often key in negotiating outcomes, where each participant agrees to make concessions. However, if the group is unable to reach a consensus through compromise or negotiation, arbitration can be used as a method to resolve the dispute. This can be especially beneficial in larger workplaces or unionized environments where in-house dispute resolution processes exist.
Arbitration is particularly useful in resolving collective dilemmas, such as when staff members disagree on the allocation of resources or when the determination of values is at stake.
It reduces the transaction costs associated with group decision-making and avoids the conformity costs that come with delegating power to a single person, thus providing a balanced and equitable resolution to complex workplace conflicts.