Setting up a suggestion scheme.Introduction Suggestion schemes are used by organisations 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, including those from operational and customer facing areas who often see problems and solutions that management do not. Staff morale is usually improved as a result. 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. National Occupational Standards for Management and Leadership This checklist has relevance to the following standards: B: Providing direction, units 6, 7 D: Working with people, units 1, 2 Definition Suggestion schemes are policies designed to encourage employees to generate ideas or proposals that improve work processes, for which they may then receive a gift or cash reward. The objective of a suggestion scheme is to promote employee involvement, creative thinking and continuous improvement. Success can be evaluated in terms of the participation rate, or by the level of cost savings, but there may be an incalculable in·cal·cu·la·ble adj. 1. a. Impossible to calculate: a mass of incalculable figures. b. Too great to be calculated or reckoned: incalculable wealth. beneficial effect on sales, customer loyalty, retention of employees and motivation. 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 easily be communicated to the relevant person 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 Adj. 1. recognisable - capable of being recognized placeable, recognizable identifiable - capable of being identified to employees. A logo for the scheme could be designed. * 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·vis  a·bil that a
continuous scheme is implemented, with dates set for re-advertising.
* 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. Many schemes are now operated via a company's intranet but paper submissions should also be accepted especially in organisations where not all staff use computers. * Assessing the suggestions Assessments should take place on a regular basis. 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" 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 tax position of suggestion scheme awards should be checked with 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. . Some awards can be free of tax but there are limits on the amount. 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 more sustainable. 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 with the aim of maximising staff involvement. Methods to use include: * posters and leaflets on notice boards and dedicated company intranet pages * articles in staff newsletters and magazines (to include 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. Improvements made as a result of a successful suggestion should be communicated to employees. 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. Managers should avoid * implementing a scheme without piloting it first * forgetting to provide recognition of every suggestion (even if they can't be implemented). * only considering big ideas. Small or seemingly seem·ing adj. Apparent; ostensible. n. Outward appearance; semblance. seem  ing·ly adv. trivial TRIVIAL. Of small importance. It is a rule in equity that a demurrer will lie to a bill on the ground of the triviality of the matter in dispute, as being below the dignity of the court. 4 Bouv. Inst. n. 4237. See Hopk. R. 112; 4 John. Ch. 183; 4 Paige, 364. suggestions may also prove worthwhile.
Additional resources Books Suggestion schemes the management tool for the 90s, Amanda (language) Amanda - A functional programming language derived mostly from Miranda with some small changes. Amanda was written by Dick Bruin and implemented on MS-DOS and NeXT. It is available as an interperator only. 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:
This book is available for loan to members from the Management Information Centre. More information at: www.managers.org.uk/mic Journal articles Suggestion schemes IDS HR Studies, no 812, Dec 2005 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, no 813, Dec 2004, pp10-17 Good ship enterprise, Steve Smethurst People Management, vol 10 no 23, 25 Nov 2004, pp30-33 This is a selection of journal articles available from the Management Information Centre. More information at: www.managers.org.uk/mic Organisations Ideas UK (The UK Association of Suggestion Schemes), 52, Peveril Bank, Dawley Bank, Telford TF4 2BZ Tel: 0870 902 1658 www.ideasuk.com |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion