Employees’ Suggestion Scheme

By-Pragati BhagatKanchan Patel

Rig Veda says …

“Aa No Bhadra Kratavo Yantu Vishwatah”

“Let us receive good thoughts and ideas from all directions”

means

Good ideas are not dependent upon –• Educatione.g. Kabir, Tulsi, Meera, Narsinh Mehta or Arya Bhatt did not attend schools,• Agee.g. Sant Gyaneshwar died at age of 23, Adi Sankaracharya and Swami Vivekanand died at age of 32, • Physical conditione.g. Helen Keller was deaf, dumb and blind.

So, let us not shy away from inviting ideas fromyoung, illiterate/semi-literate and physically weak.

Employees’ ideas are very important, as - • They have real knowledge because they work at grass root level,• They encounter the problems and they have probable solutions,• They come from different background hence, management gets another perspective.

Inviting and using employees’ suggestionsis very proven and widely adopted mechanismfor improvement since long, all over the world.

•The first recorded suggestion program was implemented in 1770 by the British Navy. It was to give safe way to express ideas of solders without fear of punishment.

Origins

•The first physical box to collect ideas appeared at William Denny & Brothers shipyard in Scotland in 1880.

•In 1892, NCR became the first US company to implement a company-wide suggestion program. The concept was the 'hundred-headed brain', developed by CEO John Patterson.

• Suggestion boxes became popular in the manufacturing sector in WW II and the post-war years. They became part of the total quality movement and an integral part of cost, safety and quality improvement initiatives.

International Labour Organisationpromotes this mechanism under its Factory Improvement Program (FIP).

Government of India, under itsMinistry of Labour and Employment,through Director General, Factory AdviceService and Labour Institutes( DGFASLI ), promotes this, and every year, declares 28Vishwakarma Rashtriya Purashkars ( VRP ).

Employees’ Suggestion Scheme

Famous implementing World Companies

to name a few …

Famous implementing Indian Companies

to name a few …

Helpful voluntary Indian Organisation

•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.

Companies having Suggestion Schemes are office bearers and members, like Tata Power, M & M, Godfrey Phillips, BPCL, RCF, IPCA Lab., Siemens,Kansai Narolac, Escorts Tractors, Dalmia Cement, L & T, SAIL, BHEL, ITC,Munjal Shova, Caparo Engineering, Special Steels, Phillips India, Tata Steel, etc.

Helpful voluntary Indian Organisation

It has three operating Chapters at Delhi NCR, Tamilnadu and Jharkhand,and a fourth Chapter in Western Region has been recently inauguratedon 25th July, 2010, covering Gujarat, Maharashtra, Goa and Madhya Pradesh.

It regularly publishes a Bi-monthly INSSAN Bulletin.

For more information, visit www.inssanorg.com

ESS isMutuallyBeneficialto Employerand Employees

How do we start a Suggestion SchemeIn our organisation ?

Cash the flash

“Suggestion Scheme” is a very methodical tool

Process

Typically, the process involves workers writing their suggestions on a predefined format and placing it in a box that is easily accessible.A designated employee empties the box/es regularly, preferably once a week, and lists all suggestions.

A committee then decides which suggestions to implement and acknowledges to Suggestor.

Due recognition and rewards are given to suggestors.

For value added suggestions -

Format

It should consists of 3 parts –• What is current method for existing process,• What is new improvement suggested,• What benefit will arise

ESS typical Block Diagram Receiving suggestions

Listing

Screening

Non-useful Semi-useful Useful

ROI & Action plan

Implement & Reward

Further evaluate

Typical ESS Process Flow Diagram

What is a Suggestion ?

a) Increased Production, Higher Productivity or improvement in Products ortheir design;b) Improvement in methods, machinery, equipment or tools and layoutsprocess and procedures;c) Reduction of Costs, wastes or spillage;d) Reduction in the frequency of idle time or repairs and maintenance ofmachinery, equipment or tools;e) Improvement in working environmental conditions including removal ofhazards to health and possibilities of accidents;f) Increase in the utility, quality, yield or output of products;g) Conservation of materials, energy or time in processes or their utilizationfor better purpose;h) Import Substitution;i) Any suggestion, which is beneficial to the Company.

Any idea / Suggestion related to -

What is a not Suggestion ?

Any idea / Suggestion related to -

a) All problems of planning, capital intensive schemes or works development and management in their sense;b) Govt. policies and other activities beyond the control of the management;c) Complaints and grievances, additional facilities / benefits/ amenities;d) Collective bargaining matters / management policy matters;e) Suggestions without solution;f) Suggestion simultaneously initiated by and in line with the management thinking;g) Common idea floating around;h) Routine maintenance and normal services.

Measures

“If you want to manage, you have to control.

If you want to control, you have to measure.”

Measurements will show whether you are efficient and effective in Scheme implementation.

Efficiency Measures

• Suggestions / week,• Suggestions / month,• Suggestions / year,• Suggestions / employee / year,• No. of recognition / rewards granted,

Effectiveness Measures

• % Suggestions implemented,• ROI,• No. of gainful process changes,• / $ Saved,• Waste reduction,• Accident reduction, pollution reduction,• Cycle time reduction,• Improved customer satisfaction etc. etc.

Benchmark figures

Toyota has started implementing Suggestion Schemesince 1950 and has achieved following measureslast year –

• 1 Million ( 10 Lakhs ) suggestions / year,• 37 suggestion / employee / year,•% Suggestions implemented = 87 %,• Saving = $ 2000 / employee / year ( = 1,00,000 / emp. / yr. )

(Published 1991 )

Indian Benchmarking Suggestion Scheme PerformanceSource : INSSAN Bulletin 2003 (avg. of 22 companies)

Item All India Average

Best –in-Class Tata Steel

Idea / person 2.7 39.97( TVS Suzuki )

4.1

Employee Involvement 64% 100%( NTPC, TVS )

53%

Accepted/ Generated 67% 100%( TVS, Maruti, BEL )

21%

Implemented/ Accepted 95% 100%( TVS, BEL, BHEL )

72%

Savings in Rs. / Employee 32016 1,86,764( Maruti )

1286

Other useful reading -

Functional approaches to IR

It refers to practical implementation of already planned and structured activity which has to be used for betterment of relation between employer and employees. It consist of various aspects such as ….

FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL INDUSTRIAL RELATIONS PROGRAMME

The basic requirements on which a successful industrial relations programme is based are :-

a) Top Management Support: - Since industrial relations is a functional staff service, it must necessarily derive its authority from the line organization. This is ensured by providing that the industrial relations director should report to a top line authority to the president, chairman or vice president of an organization.

b) Sound Personnel Policies: - These constitute the business philosophy of an organization and guide it in arriving at its human relations decisions. The purpose of such policies is to decide, before any emergency arises, what shall be done about the large number of problems which crop up every day during the working of an organization. Policies can be successful only when they are followed at all the level of an enterprise, from top to bottom.

c) Adequate Practices should be developed by professionals: - In the field to assist in the implementation of the policies of an organization. A system of procedures is essential if intention is to be properly translated into action. The procedures and practices of an industrial relations department are the “tool of management” which enables a supervisor to keep ahead of his job that of the time-keeper, rate adjuster, grievance reporter and merit rater.

d) Detailed Supervisory Training :- To ensure the organizational policies and practices are properly implemented and carried into effect by the industrial relations staff, job supervisors should be trained thoroughly, so that they may convey to the employees the significance of those policies and practices. They should, moreover, be trained in leadership and in communications.

e) Follow-up of Results: - A constant review of an industrial relations programme is essential, so that existing practices may be properly evaluated and a check may be exercised on certain undesirable tendencies, should they manifest themselves. A follow up of turnover, absenteeism, departmental morale, employee grievances and suggestion; wage administration, etc. should be supplemented by continuous research to ensure that the policies that have been pursued are best fitted to company needs and employee satisfaction. Hints of problem areas may be found in exit interviews, in trade union demands and in management meetings, as well as in formal social sciences research.