SUGGESTION SCHEMES

Good ideas can improve the competitive position of the organization through increasing efficiency of production and higher quality products and services.  

Organisation of a suggestion scheme :

Step 1 : Workers writes down an ideas

Workers who have good ideas are required to put them in writing. This first stages raises three questions which must be decided by management as follows :

• What format should be used for the ideas ?
• Which workers are eligible to submit ideas ?
• What category of suggestion is acceptable ?

 Step 2 : Submitting the idea 

Once the idea has been put in writing, it must be submitted for evaluation. Again, a number of issues need clarification, especially:

•     What is the role of the supervisor at this stage?
•      How is the idea to be submitted?

The written suggestions can be placed in a special box, which should not be confused with the suggestion box that used commonly found in government departments. A better alternative to boxes is to require workers to email or hand their ideas directly to the officer-in-charge of the suggestion scheme.

Step 3 : Evaluating the idea 

Once the idea has been received and an acknowledged or receipt issued, it should be passed to an evaluation committee as soon as possible. Normally, someone from Human resource or Administration Departments will be officer-in-charge of the scheme. Including in the committee, a person from Finance Departments who will assist in costing the suggestions and evaluating their financial impact on the organization.

 Step 4 : Inform the worker and reward good ideas

When the evaluation committee has made decisions, the employee submitting the idea should be informed whether his idea is usable or not. Attractive rewards are an incentive to participate in a suggestion scheme. The phrasing of the rejection letter is important, employees should be encouraged to continue submitting suggestions.