Which term refers to the appeasement of disputes between management and employees to maintain industrial peace?

• A. Conciliation
• B. Centralization
• C. Democratic
• D. Empowerment

Answer: (A)

Conciliation focuses on resolving disputes between management and employees by bringing in a neutral party who facilitates dialogue, clarifies issues, and suggests a settlement that both sides can accept. The aim is to reduce tensions and prevent disruptive actions like strikes, helping maintain industrial peace. This is a formal, non-binding process designed specifically to bridge differences and restore harmony.

Centralization isn’t about resolving disputes; it’s about where decisions are made. Democratic management and empowerment are about increasing participation or authority for employees, not about settling conflicts through a structured settlement process.