Suggestion System

Definition

A Suggestion System is a formalized approach within an organization to solicit and collect ideas and feedback from employees, aimed at enhancing efficiency, productivity, and employee satisfaction. Suggestion systems often include mechanisms for submitting suggestions, evaluating their potential impact, and rewarding employees whose ideas lead to significant improvements. This system not only helps in problem-solving but also empowers employees by making them active participants in the organization’s growth and development.

Examples

Toyota’s Creative Idea Suggestion System (TCISS): Employees submit suggestions that aim to improve quality, efficiency, and cost-effectiveness. Successful suggestions lead to recognition and monetary rewards.
Google’s “20% Time” Policy: Encourages employees to spend 20% of their work time on projects of their choice. While not a traditional suggestion system, numerous innovative ideas and improvements arise from this policy.
IBM’s Idea Jam: A virtual brainstorming session where employees share and discuss ideas. Successful ideas can lead to new initiatives and improvements within the company.

Frequently Asked Questions (FAQs)

What is the main purpose of a suggestion system in an organization?

The primary purpose is to gather innovative ideas from employees that can lead to improvements in processes, reduce costs, enhance safety, boost morale, and increase efficiency.

How are suggestions typically submitted in a suggestion system?

Suggestions can be submitted through physical suggestion boxes, online portals or forms, dedicated email addresses, or specialized mobile apps.

Are suggestions always rewarded?

Not necessarily. While many systems have rewards for valuable suggestions, some may only offer recognition or acknowledgment without financial incentives.

Who evaluates the suggestions?

A designated committee or team typically reviews, evaluates, and implements suggestions. This team may include members from various departments and levels within the organization.

How does a suggestion system benefit employees?

Employees benefit through increased engagement, a sense of being heard and valued, potential financial rewards, and personal satisfaction in contributing to company improvements.

Suggestion Box: A physical or virtual box where employees can submit their suggestions for improving workplace processes and conditions. It’s often used within the larger framework of a suggestion system.
Employee Engagement: The level of enthusiasm and dedication an employee feels toward their job. High employee engagement typically leads to increased organizational performance.
Incentive Program: A program that offers rewards or recognition to employees for meeting certain performance metrics or contributing valuable ideas, similar to but broader than specific suggestion systems.

Online References

Suggested Books for Further Studies

“The Idea-Driven Organization: Unlocking the Power in Bottom-Up Ideas” by Alan G. Robinson and Dean M. Schroeder
“Employee Engagement Through Effective Performance Management: A Practical Guide for Managers” by Ramesh Gopalswamy
“Innovation Management: Effective strategy and implementation” by Keith Goffin

Fundamentals of Suggestion Systems: Management Basics Quiz

### What is the primary goal of a suggestion system? - [x] To elicit ideas from employees that improve organizational processes. - [ ] To create confusion and disinterest among employees. - [ ] To allow management to track employee productivity. - [ ] To monitor employee attendance. > **Explanation:** The main aim of a suggestion system is to gather innovative ideas from employees to improve productivity, efficiency, and workplace environment. ### How do suggestions typically reach the evaluation committee in a suggestion system? - [x] Through physical or virtual suggestion boxes. - [ ] Through public announcements. - [ ] Only through email. - [ ] Via traditional mail. > **Explanation:** Suggestions can be submitted through physical suggestion boxes or virtual methods like online portals and email. ### Are monetary rewards always guaranteed for every suggestion in a suggestion system? - [ ] Yes, every suggestion is financial rewarded. - [ ] No, monetary rewards are never offered. - [ ] Yes, but only if the suggestion saves millions. - [x] No, not all suggestions get monetary rewards. > **Explanation:** While monetary rewards might be part of the incentive, not all suggestions are compensated financially. Some may offer recognition or other non-monetary rewards. ### How do suggestion systems benefit the organization? - [ ] By reducing employee dissatisfaction. - [x] By improving efficiency and reducing costs. - [ ] By monitoring employee activities. - [ ] By restricting employee communication. > **Explanation:** Suggestion systems help improve efficiency, reduce costs, and foster innovation, ultimately benefiting organizational growth and employee morale. ### Who is typically responsible for evaluating suggestions in a suggestion system? - [ ] The CEO only. - [ ] External auditors. - [x] A designated committee or team. - [ ] Human resources department only. > **Explanation:** A designated committee or team, often comprising members from various departments, reviews and evaluates suggestions. ### Can employees submit suggestions anonymously? - [ ] No, all suggestions must have the employee's name. - [x] Yes, many suggestion systems allow for anonymity. - [ ] Only if they are emailed. - [ ] Only for critical issues. > **Explanation:** Many suggestion systems allow for anonymous submissions to encourage open and honest feedback without fear of retribution. ### Why are suggestion systems important for employee engagement? - [x] They empower employees to contribute to the organization. - [ ] They increase workload significantly. - [ ] They reduce the number of workers required. - [ ] They enforce management’s control over employees. > **Explanation:** Suggestion systems empower employees by involving them in the decision-making process and showing that their ideas are valued. ### What is a common challenge of suggestion systems? - [ ] High implementation costs. - [x] Lack of follow-through on suggestions. - [ ] Overwhelming praise from all employees. - [ ] Excessive rewards dispensed. > **Explanation:** One common challenge is the lack of follow-through on evaluating and implementing suggestions, which can lead to employee distrust and disillusionment with the system. ### Suggestion systems often include which of the following incentives? - [x] Bonuses, recognition, and sometimes promotions. - [ ] Demotions and salary cuts. - [ ] Mandatory overtime. - [ ] Transfer to other departments. > **Explanation:** Incentives commonly include bonuses, recognition, and potential promotions to motivate employees to participate actively in the suggestion system. ### Which notable company is known for its effective suggestion system? - [ ] Amazon - [ ] Apple - [x] Toyota - [ ] Facebook > **Explanation:** Toyota is well-known for its effective suggestion system known as the Toyota Creative Idea Suggestion System (TCISS), which has resulted in numerous process improvements and innovations.

Thank you for exploring the concept and benefits of suggestion systems with us. Through active engagement and idea-sharing, organizations can foster a more collaborative and innovative workplace!