Outcome versus Process Control
A key aspect in any type of third-party intervention involves the control held by the third party The ability to control the outcome is the key distinction between mediation and arbitration. Outcome control refers to the ability of the third party to impose a final, binding settlement on the parties. In contrast, process control refers to the ability of the third party to control the discussions, questions, and process of communication.
The mediator has process control but not outcome control (i.e., the power to impose a settlement). In arbitration, third parties have process and outcome control. Arbitration may be passive or inquisitive, and the arbitrator can have full discretion to impose any kind of settlement or can have constraints, such as the requirement to choose one side's final offer.