Conciliation - Meaning & Importance

Published in Human Resources Terms by MBA Skool Team

What is Conciliation?

Conciliation is the part of the dispute resolution technique between management and union, which helps to resolve the issue between two parties on a point of disagreement. Conciliation is often considered as last chance before parties get engage in adjudication i.e. labour court hearing. As conciliation is engaged often after the voluntary arbitration fails. At the conciliation state parties can mutually agreeable benefit.

Based on the parties or the number of people involved, conciliation can be of various types i.e. individual & collective. It is based on voluntary action & is a confidential & flexible process for dispute resolution. 


Importance of Conciliation

Mediation for the purpose of conciliation is done by an officer. The officer act as a facilitator. He also parties to come to the negotiation table. The officer tries to reach amicable solution. If at all the settlement is reached between the parties it is signed by the management, union and conciliation officer.

Settlement is binding on the parties to the dispute as well as the all concerned workman present as well as future).It is also binding on employer and his assigns and heirs. This article makes settlement reached in conciliation proceeding applicable to the future owners of the organization in case of merger and acquisition.

The conciliation proceeding give that last opportunity to the parties to the dispute to resolve dispute in a mutually agreeable and convenient way. This also is the mechanism to resolve our own conflict without losing the control of the proceedings to outside person. Once the conciliation fails the matters also take time to resolve as lot procedural thing come into the picture of judicial nature.

Difference Between Conciliation, Arbitration & Mediation

Arbitration is an alternative form of dispute and it differs from conciliation as arbitrators are appointed by both the parties and the arbitrators take a decision which is binding to both the parties. The parties opt for private resolution instead of opting to go to court.

Mediation is also a form of alternative dispute resolution in this a neutral third party tries to resolve a dispute between the two parties using specialized communication and negotiation techniques. Mediation is a "party-centered" process in that it is focused primarily upon the needs, rights, and interests of the parties

Advantages of Conciliation

It has several advantages in business. Some are:

1. Helps in resolving dispute between two parties in the company

2. Conciliation gives opportunity to reach a settlement

3. Prevents business production disruption due to disputes.

Hence, this concludes the definition of Conciliation along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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