Alternative Dispute Resolution and Quaker Oats

The use of alternative dispute resolution (ADR) programs to resolve contentious issues involving employees is gaining favor with both private and public sector organizations (Kelly & Berke, 1996, p. 15). Growth in the use of ADRs, however, has been accompanied by some outcomes that threaten to compromise the effectiveness of the approach to dispute settlement. Specifically, some judicial actions have held that mandatory arbitration specified in pre-dispute resolution agreements are not enforceable (Kelly & Berke, 1996, p. 15).

This research examines the ADR approach to the resolution of issues associated with claims of employment discrimination. Employment discrimination, as the term is used in this research, is defined broadly. Therefore, issues involving claims of sexual harassment are included along with claims of discrimination related to hiring, firing, promotion, assignments, and so forth.

The use of ADRs in relation to employment discrimination issues also is reviewed within the context of organizational human resource policy. The focus of the policy review segment of this research is the Quaker Oats Company.

Alternative dispute resolution is the term used to describe a variety of ways in which a dispute can be resolved outside of an organization's formal justice system or without resorting to society's judicial system (Evans, 1995, p. 56). ADRs may be e

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hat it is proposed when a company is confronted with a formal agency charge or lawyer's demand letter on behalf of an employee (Goldstein & Payson, 1995, p. 38). Arbitration can be structured to lead to voluntary arbitration on an ad hoc basis, or to mandatory arbitration. On an ad hoc basis, voluntary arbitration can be suggested after a dispute has arisen and all other internal grievance procedures have failed. Mandatory arbitration, then, can be the so-called "final step" for dispute resolution by incorporating such requirements in handbooks or employment contracts. Arbitration is usually based on the mutual agreement of the parties. A final decision or award is made, which is binding and enforceable as a judgment in all 50 states, barring any claims of bias or lack of due process (Goldstein & Payson, 1995, p. 39). Arbitration has been found to reduce attorneys' fees and settlement costs (Society For Human Resource Management, 1994b, p. 3). One study found that such savings typically amounted to 20 percent (Society For Human Resource Management, 1994a, p. 3). Policy Review Typically, the Quaker Oats Company has not been afflicted with human resource management problems to the extent that has been true of most other maj
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Approximate Word count = 1904
Approximate Pages = 8 (250 words per page)

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