This paper deals with industrial conflicts. The application of mediation within an organization is considered. Mediation is seen as a tool whose effectiveness can be ex-pressed through economic indicators. Constructive conflict resolution has a positive impact on the socio-psychological climate of an organization. Mediation used to resolve conflicts between people working in the real economy does not differ from mediation used for the same purpose in other spheres of social production.

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... is presented as a new way to manage conflicts at work. First, mechanisms of formation of conflicts on production grounds are described; second, peculiarities of vertical and horizontal conflicts are outlined; and third, the choice of strategies for settlement of production conflicts (disputes) is argued. The ways of applying the media approach and communication techniques and techniques by managers are considered. The work reveals the peculiarities of observing the principles of mediation and possible limitations of applying the mediative approach in the production environment. The main question, which is answered by the author of the article: How can a manager today manage conflict and develop his social and professional competences and sensitivity to interpersonal processes?