Explanation:

Arbitration is in some terms similar to Conciliation. In this method of dispute resolution also, the unresolved dispute is referred by the parties to a dispute to a third party who stands to be neutral and is commonly known as the arbitrator. This method is different from conciliation because the judgement is given by the third party in the former whereas parties themselves come to an agreement in the latter category.

Unlike judges, the arbitrators do not enjoy judicial powers. The function of an arbitrator is to listen to the viewpoints of both the parties and then deliver his judgement. The decision is sent to the government who publishes it. The judgement becomes enforceable and binding on both the parties.