Let's identify when it is appropriate to use each approach. Let's demonstrate our understanding and which approach or approaches would be the most beneficial for the Conflict between certain team members? Let's justify our reasoning.
The Compromise
I Lose / Win Some -You Lose / Win Some
Settles differences through concession - both parties get less than what they wanted but at least come away with something. An element of dissatisfaction may still exist. Or, to sum up "good compromise" in a highly memorable movie line, Jack Nicholson's character in As Good As It Gets, "You make me want to be a better man". Compromise is the act of finding the middle ground between two opposing points of view, in the hope of finding the 'Happy Medium' - acceptable to both parties. Compromise can be a useful and valid method of handling conflict situations or solving dilemmas. Although this can be a mistake that can and will cost John some of his credibility as a decision maker.
The issue between Lee and Jake is one that should be compromised, considering that Lee and Jake are equally valuable to the firm, a compromise is the keep all sides happy approach if the parties are of course willing for this to happen.
Collaboration
I Win - You Win
Involves people cooperating to produce a solution satisfactory to both parties (win-win) Time consuming but desirable when personal relationships must be preserved and require good negotiating skills by both sides.
The conventional wisdom rests on the false assumption that the more employees collaborate, the better off the company will be. In fact, collaboration can just as easily undermine performance. A surprising conclusion about this seemingly sensible practice: The greater the collaboration, the worse the result (measured by success in winning conflicts). Ultimately experienced teams typically don't learn as much from their peers as once thought. Whatever marginal knowledge they did gain was often outweighed by the time taken away from their work on the proposal.
Competition
I Win - You Lose
One party gains an advantage over another at the expense of the other. Generally aggressive as it is based on power Win - Lose, bad for personal relationships and leaves losing Party in a difficult position...