Resolution - Negotiation and Mediation

Negotiation: 

Direct discussion between disputing parties in attempt to reach compromise and reach formal or informal agreement. 

No intervention of third party; most cost effective and least disruptive. 

If disparity between power of disputing parties; result in stress, tension and fear of retribution.

Mediation: 

Confidential discussion of issues in non-threatening environment in the presence of a neutral third-party (HR or outsourced specialist). 

More expensive and formal (documented), but allows for support for both parties in cases of obstinate party.