Suggestion Schemes

sunandaC

Sunanda K. Chavan
Definition:-
A system in which people who work for an organization suggest ways in which it could be improved, and are given rewards for useful suggestions.
A system whereby employees can make suggestions on how the organisation should be run more efficiently or profitably

Example:- The suggestions scheme takes the form of a monthly meeting where employees can offer ideas for improvement of production techniques.

Suggestions are requested on the following topics :-

Engineering / Technical
Inspection Methods and Procedures
Process changes / Drawings
Material / Procedure related
Gauges and Tools
Logistics

Explanation:-
The employee suggestion scheme is next to the continuous improvement process (CIP) and employee inventions a part of innovation or idea management. The continual corrective procedure represents guided brainstorming with a moderator and a regularly recurrent process, whereby the suggestions of improvement are distinguished by spontaneous brainstorming. In order to be able apply the idea, the companies and institutions field a defined processing procedure. In contrast to employee inventions, which are stipulated by the Employee Invention Act, the suggestion scheme is regulated in the company agreement or collective agreement.

Every stimulus and idea is regarded as a suggestion of improvement that
• is voluntarily rendered by an employee and exceeds his/her own field of duties
• is not a patentable invention
• improves a product or process or suggests a solution for a company problem
• simplifies, accelerates working methods and working processes or makes them safer
• helps to prevent mistakes, improves quality, reduces manufacturing costs and leads to increases in efficiency

A part of the company agreement or the collective agreement is the payment of an improvement suggestion. Usually the fee orientates towards the amount saved. For example; 10-20% of the savings during the first year or a fixed sum for small improvements that are targeted towards saving money to a lesser extent, but concern safety at work. The improvement suggestion can involve all areas: technical improvements as well as organisational, commercial and social. They do not need to be new; they can be copied and adapted from other departments, companies and institutions.
Payment is effected in the form or cash premiums or material premiums. The companies can also carry out special actions or competitions, in order to increase the number of improvement suggestions. In the meantime, it has been recognised that this instrument
• realizes savings and improves quality
• contributes towards permanent product and process innovation
• promotes the motivation and identification with the company
• supports the development of the employees
• is a performance benchmark for the company culture and illustrates the company's innovative ability.

Objectives

The company believes that the employee on the job knows the best & can contribute significantly towards its growth & prosperity by enthusiastically participating in management of the affairs of the company.

The suggestion scheme is introduced:

 to stimulate creativity

 to encourage employee participation


 to recognize constructive ideas by personal rewards

 to recognize Supervisors/Managers who motivate employees and implement the suggestions.

Planning the suggestion scheme

An analysis of suggestion schemes in world-wide shows that the formula or success in implementing the schemes are as follows:
1. All details of the system must be well planned from the definition of a suggestion to evaluation

and award criteria.

2. Responsibility for programmed co-ordination must be assigned to a responsible management
member (someone who will "Champion" the cause).

3. Programme details and procedures must be clearly communicated to all employees.

4. Top management must visibly and enthusiastically support the programme and communicate its
continual commitment to it.

5. Acknowledgements must be prompt.

6. The program must receive ongoing publicity.
Adequate financial incentives should be provided but that is not enough. What people really want is public acknowledgement, personal expression of appreciation coupled with financial incentives.

Publicizing the scheme
You will have to actively drive and sell the programme. This could be effected by:

• The running of promotional campaigns, i.e. using well designed posters, circulars in pay
packets etc.

• Placing photos of staff awarded and an article should be published in the in- house magazine
and corporate newsletter.

• Another alternative can be involvement by the HR Division. The design and running of a
"Creativity and Innovation" training workshops can assist in the process. The benefit of this course
will be that Managers, including staff, will know how to evaluate ideas, generate ideas and how to share ideas.

• A climate for suggestions can be created.

What are you doing to capture the thoughts and ideas (the intellectual capital) of your employees? Time and time again research has shown that employees have ideas that can benefit the organization.

Unfortunately ideas and thoughts are like light bulbs. If not captured, they disappear at the flick of a switch.
Eligible employee

All employees including trainees. Apprentices are eligible for awards provided the suggestion is not part of ones normal duty or solution to an assigned task.
Eligible suggestion

It should be an original idea which will lead to:
 Increased production & productivity

 Energy conservation

 Reduced costs by better methods elimination of waste, cost control, etc.


 Removing bottle-necks

 Improved quality


 Increased safety & prevention of accidents, better house keeping, improved environment, etc.

Non-Eligible suggestion
 Suggestions on government policies

 Suggestions which are already under consideration of management/already implemented

 Suggestions on matters which are of the primary responsibility of the suggested


 Matters of collective bargaining/Industrial Relations

 Repeated suggestions

 Suggestions without feasible solutions

Tips, Checklist

 Clarify how the employee suggestion scheme is institutionalised in your company: software, central department, through superiors
 Submit your idea in writing or in the available software process, even if you are not sure whether the idea is part of your field of duties

 Map the benefit. What will be improved by your idea and what does it bring? If possible, illustrate the monetary profit in an exemplary calculation

 If you do not get any feedback on your suggestion, enquire. Try to find out which department is processing it and whether there are any questions. Ensure it is assessed neutrally
 Do not only illustrate the problem but also the solution

 The employee suggestion scheme is not an instrument for giving feedback or to express employee satisfaction

 Make use of the idea database within your company to generate further ideas, improve existing ones or adapt them to one's own conditions

 Describe your idea as precisely as possible. In the case of larger ones, you can orientate towards drawing up a business plan

 Inform your superior and involve him/her in your thoughts. That usually pays off in assessing your suggestion and gives you an advantage in the case of an employee assessment
As a manager, take on an adoptive function for employee ideas. Promote and support your employees in making improvement suggestions and ideas. In this way, you create an innovative and creative environment.

Procedure for submitting suggestion

 Suggestion should be in writing (Hindi, Marathi, English) on the prescribed form

 Suggestion can be submitted by individual or jointly by eligible employees


 Suggestion forms duly filled in shall be put in suggestion boxes kept at the time office/R & D
Centre & other convenient locations

 Suggestion box will be opened periodically

 Receipt of the suggestions will be acknowledged and the suggestor will be informed of the
action taken

 Suggestion received will be discussed in the suggestion scheme committee meeting and award will be decided.

Selling the benefits of a scheme
To ensure that a suggestions scheme will succeed, you will have to "sell it" to management and staff, preferably from the top down.

The following steps could prove advantageous in doing so:
1. At the launch of the scheme – the purpose, details and advantages should be spelled out to them orally and then followed up with a written document.

2. An attractive notice or poster, briefly summarising the essential features of the scheme and designed to draw attention to it, should be placed on notice boards in the branches.
3. A suggestion Committee should be selected on the basis of their technical and managerial knowledge to appraise and rate the suggestions fairly and accurately. (Some members noted for their creativity should be included).

4. The suggestions should be evaluated on a regular basis, i.e. bi-monthly.
It is essential that suggestions should be dealt with promptly, so that staff may be assured of the sincere desire of management to receive and evaluate suggestions.
5. Regardless of its value, every suggestion should be acknowledged promptly and as soon as possible the employee who made the suggestion should be advised of the outcome thereof, by personal interview or letter.

This will prevent staff from losing interest in the scheme.

6. Any usable suggestion should result in some definite recognition to the employee concerned, ranging from: Honourable mention, or letter of appreciation to a maximum cash award.
7. In order to ensure impartiality on the part of the members of the committee it is desirable that the person who comes with the idea’s identity be unknown to them to prevent bias.
8. Every suggestion that is adopted should be noted on the staff member’s service record for consideration when the question of promotion arises.

9. The Suggestion Scheme could also be viewed as a complaints channel provided the Department head’s authority is not undermined.


Estimated Budget for Proposed Suggestion Scheme

All costs will be incurred by the President’s Office and using the current staffing provision within the President’s Office. No additional resources are required
Suggestion Scheme Committee

The committee will comprise of Chairman, Secretary and representatives from each department, plus 2 or 3 employee representatives.
Role of Suggestion Scheme Committee
 To make rules and procedures for scrutinizing the suggestions
 To decide on the feasibility of suggestions and its acceptance
 To decide on any problem related to the operation of the scheme
 To decide on the rewards.

Awards
Due thought needs to be given to the award criteria. These can range from tangible to intangible awards. It will be the policy of the company to reward the accepted suggestion liberally. The quantum will be decided by the suggestion Committee.

Financial awards could consist of various grades of suggestions per company ranging from Overall award for the year to Quarterly awards. It can, however, be assisted by other methods: A large floating trophy should be purchased and be given annually to the company or branch which came up with the best reward, at either the Annual Conference or the AGM. The individual and regions name should be engraved on nameplates and mounted on the trophy. Another factor is that this trophy can be held and displayed at the winning office for the period between judging, thus generating regional pride.
Suggestion of the year award

The employee who gives maximum number of winning suggestions or whose suggestion is adjudged as the best suggestion will receive a Special Award.
Departmental award

For the department, from where maximum number of Award Winning suggestions are received.
 
Benefits of a Suggestion Scheme

Promoting creativity and innovation

Cost savings

Safety improvements

Improved quality and service

Improved communication

Opportunity to recognise and be recognised

Promote continuous improvement

Improved staff Morale
 
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