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Setting up a suggestion scheme.


[check] This checklist provides guidance for those who wish to set up a suggestion scheme within their company or organisation.

Suggestion schemes have been used by organisations for a number of years as a way of gathering ideas from their employees to increase productivity, cut costs, or improve working conditions. A successful scheme has many positive effects on an organisation; most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent"
above all, most especially
, it encourages management to listen to employees' ideas. Employees may also feel that management cares and listens to them. Implementing a successful suggestion scheme is not an easy process. Careful planning, involving much staff time, is needed throughout. Suggestion schemes should not be seen as an alternative to regular communication and hands-on hands-on
adj.
Involving active participation; applied, as opposed to theoretical: "We're involved in hands-on operations, pulling levers, pushing buttons" Arthur R. Taylor.
 management, but rather as a supplement to them.

Definition

A suggestion scheme is a planned procedure which enables employees to make known ideas which will affect any aspect of work, from cost savings and operational improvements to new product ideas and better customer service, and which may reward them for their initiative if the suggestion is implemented.

Advantages

Employee suggestion schemes:

* can lead to a reduction in costs and greater efficiency

* encourage employee involvement, which in turn improves morale and motivation

* help foster an environment in which creativity and innovation can flourish

* enable employees at "ground level", who can often see problems and solutions that management do not, to be heard.

Disadvantages

They:

* need constant management to be effective.

Action checklist

1. Designate des·ig·nate  
tr.v. des·ig·nat·ed, des·ig·nat·ing, des·ig·nates
1. To indicate or specify; point out.

2. To give a name or title to; characterize.

3.
 a Suggestion Scheme Committee

The members of the Suggestion Scheme Committee (SSC SSC Secondary School Certificate
SSC Standard Systems Center (USAF)
SSC State Services Commission (New Zealand)
SSC Swedish Space Corporation
SSC Salem State College (Massachusetts) 
) should be drawn from all levels of the organisation. The SSC will help manage the scheme and provide input from its conception to its end. Appoint a co-ordinator (not necessarily from senior management, but someone with project management experience who commands respect and can get things done) to oversee the project.

2. Identify alternative schemes

Ascertain whether members of the SSC have been involved in this type of scheme before, and if so utilise their experience. The co-ordinator should, if possible, undertake a literature search to find similar case studies. Remember, however, that a suggestion scheme which works for one organisation may not work for another. A small organisation, for example, may not require a scheme at all, as ideas may be communicated to the relevant person easily enough anyway.

3. Draw up a scheme

After examples of suggestion schemes and the characteristics of the organisation are taken into account a scheme can be drawn up. Points to include when formulating the scheme are:

* Name of the scheme

The scheme should be given a name that will make it instantly recognisable to employees. Design a logo for the scheme that can be used for posters, leaflets and suggestion forms.

* Length of scheme

Running a scheme for set periods of time throughout the year has the advantage that publicity can be geared towards specific dates of start-up Start-up

The earliest stage of a new business venture.
 and so is more efficient. It can be difficult to advertise a continuous scheme effectively, keeping it fresh in the employee's mind. Suggestions do not, however, occur only at certain times of the year so, depending on availability of resources, it is advisable ad·vis·a·ble  
adj.
Worthy of being recommended or suggested; prudent.



ad·visa·bil
 that a continuous scheme is implemented, with dates set for re-advertising, for example after Christmas shutdowns.

* Format for suggestions

Keep it simple. Encourage the description of ideas in simple language for even complex, technical ideas. The detail can be filled out later. Have centrally available suggestions boxes and use the company's intranet for sending suggestions to a central address. Some schemes require the originator's name and do not accept anonymous suggestions.

* Assessing the suggestions

Assessments should take place on a regular basis, for example, monthly.

The SSC should discuss individual suggestions and develop them where appropriate. It might be helpful to prepare guidelines guidelines,
n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks.
 for the evaluation process. These should include assessing the benefits to the organisation or department, ease of implementation, originality o·rig·i·nal·i·ty  
n. pl. o·rig·i·nal·i·ties
1. The quality of being original.

2. The capacity to act or think independently.

3. Something original.

Noun 1.
, and overall costs.

Some suggestions may impact widely on administrative or production procedures, affecting many staff. Consider what re-training or re-tooling may be required and how or when this could be implemented. In such cases, a cost benefit analysis may be useful.

Consider any possible effects on external stakeholders Stakeholders

All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government.
, such as customers or suppliers.

A brief "thank you" note should be sent to all originators, whether successful or not.

* Rewards/awards

Monetary rewards or gifts can be given to suggestors. The amount can be linked to any cost savings or improvements in efficiency, or it could be a standard gift for each successfully implemented suggestion. The Inland Revenue Inland Revenue
Noun

(in Britain and New Zealand) a government department that collects major direct taxes, such as income tax

Noun 1.
 has rules on the amount that can be awarded to an employee which should be checked carefully.

The award can also be linked to the type of suggestion made:

* production--methods for reducing costs or increasing efficiency

* health and safety--ideas for improving health and safety in the workplace

* environmental--suggestions to make the organisation "environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] ".

Consider providing an award that recognises the initiative of making a suggestion, whether it is implemented or not. Where a number of sites are involved, a "Suggestion of the Year" award could be made which covers the whole organisation.

4. Publicity

The scheme should be widely publicised Adj. 1. publicised - made known; especially made widely known
publicized
. Details should be included in the staff handbook
For the handbook about Wikipedia, see .

This article is about reference works. For the subnotebook computer, see .
"Pocket reference" redirects here.
. The improvements made as a result of a successful suggestion should be communicated to the employees. Methods to use include:

* posters and leaflets on notice boards and on the company intranet

* articles in staff newsletters and magazines (including details of "winners" when there are any)

* inclusion as part of the induction training Induction training is a type of training given as an initial preparation upon taking up a post. Its goal is to help new employees reach the level of performance expected from an experienced worker.  for new staff.

The initial publicity for the scheme should communicate the advantages for the employees and dispel any fears they may have.

5. Run a pilot

A small scale pilot scheme should be implemented. Any problems in administering it should be reviewed and modifications made.

6. Implement the scheme

The full scheme should be implemented. Any problems which occur in the running of the scheme should be noted by the co-ordinator.

7. Evaluate the scheme

At the end of a set period of time the scheme should be evaluated. Points to look out for include:

* the number and types of suggestions made

* the number of suggestions taken up and implemented

* financial savings made

* increases in efficiency

* costs incurred

* rewards/awards made

* problems noted

* feedback from employees.

If the scheme is under-used, a thorough examination to determine why should be carried out.

After the SSC has discussed the evaluation of the scheme, any modifications necessary should be made. A report should be made to management detailing the performance of the scheme.

The evaluation process must be carried out each year throughout the life of the scheme, so that improvements and modifications can be made.

Dos and don'ts for setting up a practical suggestion scheme

Do

* Publicise Verb 1. publicise - call attention to; "Please don't advertise the fact that he has AIDS"
advertise, advertize, publicize

announce, denote - make known; make an announcement; "She denoted her feelings clearly"
 the scheme regularly.

* Aim to get maximum participation.

* Try to give feedback to the originator Originator

A bank, savings and loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is usually appointed manager of the underwriting
 as soon as possible.

Don't

* Implement a scheme without piloting it first.

* Forget to provide recognition of every suggestion (even if it can't be implemented).

* Under-communicate the advantages of the suggestion scheme to all employees.

Useful reading

Books

The great escape breaking out of creativity inertia inertia (ĭnûr`shə), in physics, the resistance of a body to any alteration in its state of motion, i.e., the resistance of a body at rest to being set in motion or of a body in motion to any change of speed or change in direction of  the challenge of the twenty first century Nigel Bassett-Jones, Geoffrey C Lloyd and Dennis Baker <noinclude>

Dennis James Baker (born December 29, 1947 in Norseman, Western Australia) was an Australian cricket player, who played for the Western Warriors and the Tasmanian Tigers. His career was from 1972 until 1982.
 

Suggestion schemes the management tool for the 90s, Amanda Dunn and Geoff Lloyd This article or section may contain original research or unverified claims.

Please help Wikipedia by adding references. See the for details.
This article has been tagged since September 2007.
 Lancing Lancing may refer to:
  • Lancing, West Sussex
  • Lancing College
  • Lancing railway station
  • Lancing (surgical procedure)
  • Lancing (shearing), a manufacturing procedure
See also:
  • Lansing
: United Kingdom Association of Suggestion Schemes, 1997

Journal articles

Employee suggestion schemes an idea whose time has come, Mark Crail IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws.  Employment Review, 10 Dec no 813, 2004, pp10-17

Good ship enterprise, Steve Smethurst People Management, 25 Nov vol 10 no 23, 2004, pp30-33

Suggestion schemes study IDS Studies: Jun no 752, 2003, whole issue

Useful addresses

Ideas UK (United Kingdom Association of Suggestion Schemes), Broadway House, Bexley Road,, Bangor BT19 7TS

Tel: 0870 902 1658 www.ideasuk.com

Thought starters

* How many clever ideas are lying dormant Latent; inactive; silent. That which is dormant is not used, asserted, or enforced.

A dormant partner is a member of a partnership who has a financial interest yet is silent, in that he or she takes no control over the business.
 in employees' minds?

* Have you ever wanted to make a suggestion that would improve efficiency? What did you do?

* What would encourage you to make a suggestion?

* What would deter you from making a suggestion?
COPYRIGHT 2005 Chartered Management Institute
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Article Details
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Title Annotation:Checklist 071
Publication:Chartered Management Institute: Checklists: Human Resources, Training and Development
Geographic Code:4EUUK
Date:Oct 1, 2005
Words:1328
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