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Mediation is a type of intervention meant to reduce or eliminate conflict among persons or parties who have opposing desires in a situation. For example, a family mediator may assist a couple going through a divorce to reach an agreement on the terms of the divorce in areas such as custody of children, settlement of property, and so on. More technically, mediation is the intervention by a third party who is acceptable to the disagreeing parties, who is impartial, and who is neutral (having no relationship with the disagreeing parties). Neutrality also means that the mediator will not gain personal favors or benefits from one of the parties for assisting with mediation.

By definition, mediation is part of negotiation. That means that mediation occurs during a process in which two or more people or parties are discussing their differences and attempting to reach a solution on one or more areas of disagreement. Mediation, therefore, is an extension of negotiation with the addition of a third, neutral party in the negotiation discussions. The assumption behind the addition of the mediator is that the third party will be able to influence the relationship between the two disagreeing parties in such a way as to help them settle the disagreement. The mediator might, for example, balance a power differential, influence the behavior of one of the parties, create a more effective problem-solving process, or create a more facilitative atmosphere during the discussions.

The mediator does not have the power to make a final decision in the disagreement. A judge or an arbitrator may be designated by law or procedure to make a final decision in favor of one or the other party or partially favoring both. In contrast, a mediator assists the parties in arriving at a mutually acceptable solution that maximizes each party's interest.

Mediation has gained favor in recent years as a method of conflict resolution, because it offers several benefits. When compared to litigation, mediation can result in quicker and less expensive decisions. If completed successfully, mediation, by definition, results in a decision that maximizes each party's interest and thus should be more satisfactory to both parties than a decision arrived at by a judge or arbitrator. Mediation can consider a variety of issues between parties, including ones not typically considered in courts. Last, and of interest to counselors, mediation can teach the parties more effective skills of negotiation and problem solving, which can be applied in future disputes.

Mediation proceeds along a series of stages. These stages begin with initial contacts with the parties to the dispute and continue through assisting the parties in selecting a strategy to work with during mediation, collecting background information, defining the issues and setting the agenda, generating options for the agreement, conducting final negotiations, and achieving a settlement. Within each of these stages are various tasks for mediators and parties. For example, during initial contacts with the parties, the mediator will be working to prepare the parties to work together cooperatively, defusing negative emotions resulting from previously unsuccessful negotiations, building trust, clarifying expectations, and ensuring clear communication.

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