SS

SUGGESTION SCHEME
By:
Kanchan Yadav
Roll no. – 61
HKIMSR, Jogeshwari
Definition
 A Staff Suggestion Scheme can briefly be defined as a formal channel which

encourages every employee to suggest ideas which may be helpful in solving or
avoiding problems or improving work process or the work environment.
 Employee suggestion processes can take two forms

 Formal Processes
 Informal methods
 Through the Suggestion Scheme, an employee can participate directly in the

improvement of productivity in his organisation. An employee will find his job
more meaningful and interesting when he participates in the decision making
process involving his work.
Objective
The SS is introduced to:
• To stimulate creativity
• To encourage employee
participation
• To recognize Supervisors/ Managers

who motivate employees and
implement the suggestion
Role of HR
• Retention of employees as it acts as a Voice channel
• Coming up with innovative ideas to reward creative suggestions
• Involvement and participation from employees
• To provide a comprehensive scheme for stimulation of positive thinking and
creativity among the employees for coming up with suggestions for bringing
about more economy, efficiency and effectiveness – the three ‘e’s essential for
survival and growth of the company in liberalized market scenario.
• To evolve a well designed procedure for receiving and recording the suggestions.
• To frame an evaluation system for accepting the creative ideas of the
employees.
• To formulate a monetary reward scheme which would recognize the best
suggestion(s) and compensate the author in a way that not only he feels
motivated to continue to provide good suggestions in future but also others feel
inspired to emulate him.
Eligible Suggestions
It should b an original idea which will lead to;
 Increased production and productivity
 Energy Conservation
 Reduced cost by better methods
 Elimination of waste, cost control, etc.
 Removing bottle-necks
 Improve quality
 Increased safety and prevention of accidents
 Better housekeeping
 Improving the environment, etc
NON ELIGIBLE SUGGESTIONS
 Suggestions on Government Policies
 Any complaint or grievance regarding
 salary,
 grades,
 promotion,
 perquisites, working hours, etc. which should be sent to “Complaints
Committee”
 Suggestions which are already under consideration of Mgmt/ already
implemented
 Repeated Suggestion
 Suggestions without recommending feasible solutions
 A suggestion which is not specific or too general in nature (e.g. the workshop
should be cleaner)
 A criticism directed at other staff
 A solution to problems created by the officer himself eg error rates,
inefficiency
Ways to collect Suggestions
• Suggestions boxes
• Written forms or e-mails that formally and clearly document ideas
• Telephone call centers and toll-free numbers to collect ideas
in a verbal manner and/or where their employees are located
in geographically dispersed areas
• Staff or project team meetings where idea generation is
included as an agenda item
• Anonymously
Suggestion Scheme Committee
The Committee may comprise of:
• Chairman
• Secretary
• Representatives from each department
• Employee Representatives
Role of Suggestion 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
• Evaluating all ideas for their workability and potential for implementation
• Implementing all workable suggestions. This may include the
establishment of team(s) to put the suggestion into action or providing
assistance to the individual who generated the idea to help them put it
into action
• Assessing the overall outcomes of implemented suggestions and
evaluating their effectiveness in preparation for the implementation of
other ideas
• Collecting data on the number and range of suggestions from employees,
and the outcomes of suggestions that have been implemented
• To decide on rewards
Procedure for submitting
Suggestion
 Suggestion should be in writing on the prescribed
form
 Submitted by individual or jointly by employees
 Suggestion Boxes opened periodically
 Receipt of suggestion acknowledged
 Suggestion received is discussed and award
decided
Suggestion Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme
Suggestion Scheme Suggestion Scheme Suggestion ABELA Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme
& CO.L.L.C.
Suggestion Scheme Suggestion Scheme Suggestion SUGGESTION Scheme Suggestion
SCHEME FORM Scheme Suggestion Scheme Suggestion Scheme
Suggestion Scheme Suggestion Scheme Suggestion Scheme
Suggestor’s Name : ________________________
No. SuggestionDate Scheme Suggestion Scheme Suggestion Scheme
: _____________
Suggestion Scheme Suggestion Scheme :Suggestion
Designation Scheme SuggestionStaff
_________________________ Scheme Suggestion Scheme Suggestion Scheme
# : ______________
Suggestion Scheme Suggestion Scheme Suggestion
Supervisor : Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme
Suggestion Scheme Suggestion Scheme Suggestion NameScheme Suggestion Staff # Scheme Suggestion Scheme Suggestion Scheme
Designation
Guidelines:
Suggestion Scheme Suggestion
1. PleaseScheme Suggestion
fill in all the sections. Scheme
Try not to keep Suggestion
any section not answered. Scheme Suggestion Scheme Suggestion Scheme

2. EnsureScheme
that you will passSuggestion
your suggestionScheme Suggestion
to your immediate Supervisor forScheme Suggestion Scheme Suggestion Scheme
his/her comments.
3. Submit your suggestion to the Suggestion Scheme Coordinator and get your gift.
4. Please attach any other documents, if required.
Suggestion Details
Suggestion Scheme Suggestion SchemeTITLE

1. SUGGESTION Suggestion Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme
:______________________________________
2. DESCRIPTION TITLE : Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme
3. DESCRIPTION OF SUGGESTION :
Suggestion Scheme Suggestion SchemeOF
4. BENEFITS Suggestion
SUGGESTION Scheme
: Suggestion Scheme Suggestion Scheme Suggestion Scheme
Suggestion Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme
5 PHOTOGRAPHS / DRAWINGSScheme
/ ETC.: Suggestion Scheme Suggestion Scheme Suggestion Scheme
Suggestion Scheme Suggestion SchemeSUPERVISOR’S
6 IMMEDIATE Suggestion SchemeCOMMENTS Suggestion Scheme Suggestion Scheme Suggestion Scheme
& RECOMMENDATIONS:
Employee’s :_____________________ Immediate
Suggestion Scheme Suggestion Scheme Suggestion SchemeSupervisor’s
Signatures Suggestion Scheme Suggestion Scheme Suggestion Scheme
:_________________
Signature

FROM Scheme Suggestion
: SUGGESTION SCHEMEScheme Suggestion Scheme Suggestion Scheme Suggestion Scheme
COORDINATOR
TO : Scheme
General Suggestion
Manager Scheme Suggestion HumanScheme
ResourcesSuggestion
manager Scheme Suggestion Scheme
Senior Catering Scheme Suggestion
Manager Scheme
Financial ControllerSuggestion Scheme Suggestion Scheme
Catering Manager Sales Manager
Suggestion Scheme Suggestion Scheme
HygieneSuggestion
Manager Scheme Suggestion Scheme
Nutrition Manager Suggestion Scheme Suggestion Scheme
Suggestion Scheme Suggestion Scheme Suggestion Scheme Suggestion
Marketing Manager
Others __________________________
Scheme Suggestion Scheme Suggestion Scheme
Executive Chef
Based on your findings, what do your recommend?
Suggestion Scheme Suggestion Scheme

Approved Suggestion Scheme Suggestion
Rejected On-HoldScheme Suggestion Scheme Suggestion Scheme

Any Scheme Suggestion
other comments Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme
/ suggestions?
Signatures : _______________
Suggestion Scheme Suggestion Scheme Suggestion Scheme Suggestion Scheme
Rewards
In order to motivate and foster innovation
• Monetary Rewards
• Organizations may also reward more publicly e.g. at special
events, on notice boards etc.
• Some with small or non-existent budgets, resort to awards that
are more imaginative which cost little but have a high-
perceived value to the recipient.
• It include rewards such as lunch with the boss or car parking
spaces near the company's main entrance.
• Suggestor of the Year Award or Departmental Award
• An increasingly common practice is to reward individuals using
some form of points system
• INSSAN is the professional support network dedicated to assisting organisations to
create, maintain and reinforce their Employees Suggestion Scheme.
• INSSAN is managed by a team of Suggestion Scheme Practitioners with hands on
experience and is the only Indian Professional Body in this field.
• INSSAN works with organisations in all areas of Indian Industry both in the private and
public arena in manufacturing, financial and services sector, and it maintains close links
with sister associations overseas.
• INSSAN operates a country wide consultancy services providing guidance and advice
relating to the implementation and development of Employee Involvement
Programmes.
• The importance of Ideas & Programmes as part of business strategy.
• The complimentary relationship of Suggestion Schemes and other important Employee
Involvement Programmes
• The value of recognition as a motivator in Employee Involvement.
Companies- Suggestion schemes in India are over half a century
old, perhaps tracing their origin at Tata Steel, Jamshedpur.
 GAIL
 Maruti Suzuki  RCF
 BMW  SAIL
 Gharda  Coromandel
 HAL  Hero Honda
 Godfrey Philips India  IPCA Labs,
 BEL  Mahindra & Mahindra,
 BHEL  Sterlite Industries
 BPCL  Tata Power
 Tata Motors
Toyota’s Suggestion Scheme
Toyota have highly effective suggestion systems,
The four following characteristics:
1) Idea acceptance is a given
2) Pay for suggestions (but don’t pay a fortune)
3) Coaches help ideas grow
4) Implement ideas yourself
• In the early 1980's, Toyota Motors received 17.9 suggestions
per person per year.
• Toyota Motors accepted 90% of those suggestions
• Toyota received 2 million ideas annually from its workforce.
• Amazingly, Toyota implemented approximately 80% of these
ideas!
• The highly successful Suggestion System operated by the
Toyota Motors Corp generated over 20 million suggestions for
improving manufacturing processes over a span of 40 years.
• The average number of suggestions submitted by each
employee per year is close to 50 or one suggestion per
employee per week!
Toyota calls their suggestion system “soui kufuu seido”. The words “soui”
means “creative idea” and “kufuu” is best described as “figure out” or
“work out” and “seido” simply means “policy” or “system”.
In English, Toyota calls it the “Creative Ideas suggestion system”
Suggestions for improvement are actively sought and rewarded by the company
management with the support of front line supervisors which make every effort to
encourage employees to submit good ideas they might have for improvement. In this
way a strong culture of continuous improvement which enlists the active participation
by all employees has been established. This effort took many years to bear fruit. The
basis of its success was the solid long term commitment of key managers at Toyota.
Success of Suggestion
Programmes
• Support from the top e.g. the CEO
• Sound and efficient procedures to handle the process
• Recognition - with or without reward, that is seen to be
equitable and preferably high profile
All successful Suggestion Programmes have one thing in common:
QUICK and THOUGHTFUL RESPONSES

Why Suggestion Schemes Fail?
• Failing to follow up suggestions
• Lack of commitment from top managers
• Continually rejecting ideas
• Dumping all the ideas on one person to deal with
• Leaving the suggestions unopened or losing the envelopes
• The impression that ideas have been judged before they have
been even looked
• Suggestions turn into complaints
BENEFITS
• Constructive ideas
• Employees campaign for change
• Implementation of improvements to existing products, services or
processes
• A pool of ideas and suggestions that are available for future projects
• Increased customer and stakeholder satisfaction
• An increased competitive advantage (resulting in increased sales)
• Improved operating efficiency or effectiveness (resulting in reduced cost)
• Increased revenues
• Reduced time 'to market' for new products and services
• Develops morale
• Sense of belonging
• Two way communication
CONCLUSION
With constant commitment from

management and workers, suggestion
schemes can act as a catalyst for change
management, invigorating the workforce
and the organization.
Thank You

SS

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SUGGESTION SCHEME

 A Staff Suggestion Scheme can briefly be defined as a formal channel which

 Employee suggestion processes can take two forms

 Through the Suggestion Scheme, an employee can participate directly in the

• To recognize Supervisors/ Managers

Suggestion Scheme Suggestion

Suggestion Scheme Suggestion SchemeTITLE

Suggestion Scheme Suggestion

Suggestion Scheme Suggestion Scheme

Suggestion Scheme Suggestion

In English, Toyota calls it the “Creative Ideas suggestion system”

All successful Suggestion Programmes have one thing in common:

QUICK and THOUGHTFUL RESPONSES

With constant commitment from

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