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Arbitration is different from mediation, another form of alternative dispute resolution, because an arbitrator makes a decision deciding the dispute while a mediator attempts to facilitate a settlement among the disputing parties. A mediator has no power to force a settlement.
Mediation is another of the methods of alternative dispute resolution (ADR) available to parties. Mediation is essentially a negotiation facilitated by a neutral third party. Unlike arbitration, which is a process of ADR somewhat similar to trial, mediation doesn't involve decision making by the neutral third party. ADR procedures can be initiated by the parties or may be compelled by legislation, the courts, or contractual terms.