is 14581 (2006): guidelines for formulation and operation ...a suggestion scheme is a management...

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Disclosure to Promote the Right To Information Whereas the Parliament of India has set out to provide a practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority, and whereas the attached publication of the Bureau of Indian Standards is of particular interest to the public, particularly disadvantaged communities and those engaged in the pursuit of education and knowledge, the attached public safety standard is made available to promote the timely dissemination of this information in an accurate manner to the public. इंटरनेट मानक !ान $ एक न’ भारत का +नम-णSatyanarayan Gangaram Pitroda “Invent a New India Using Knowledge” प0रा1 को छोड न’ 5 तरफJawaharlal Nehru “Step Out From the Old to the New” जान1 का अ+धकार, जी1 का अ+धकारMazdoor Kisan Shakti Sangathan “The Right to Information, The Right to Live” !ान एक ऐसा खजाना > जो कभी च0राया नहB जा सकता ह Bharthari—Nītiśatakam “Knowledge is such a treasure which cannot be stolen” IS 14581 (2006): Guidelines for formulation and operation of a Suggestion Scheme in an organization [MSD 4: Management and Productivity]

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Page 1: IS 14581 (2006): Guidelines for formulation and operation ...A suggestion scheme is a management encouraged scheme through which the employees can offer their ideas voluntarily for

Disclosure to Promote the Right To Information

Whereas the Parliament of India has set out to provide a practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority, and whereas the attached publication of the Bureau of Indian Standards is of particular interest to the public, particularly disadvantaged communities and those engaged in the pursuit of education and knowledge, the attached public safety standard is made available to promote the timely dissemination of this information in an accurate manner to the public.

इंटरनेट मानक

“!ान $ एक न' भारत का +नम-ण”Satyanarayan Gangaram Pitroda

“Invent a New India Using Knowledge”

“प0रा1 को छोड न' 5 तरफ”Jawaharlal Nehru

“Step Out From the Old to the New”

“जान1 का अ+धकार, जी1 का अ+धकार”Mazdoor Kisan Shakti Sangathan

“The Right to Information, The Right to Live”

“!ान एक ऐसा खजाना > जो कभी च0राया नहB जा सकता है”Bhartṛhari—Nītiśatakam

“Knowledge is such a treasure which cannot be stolen”

“Invent a New India Using Knowledge”

है”ह”ह

IS 14581 (2006): Guidelines for formulation and operationof a Suggestion Scheme in an organization [MSD 4:Management and Productivity]

Page 2: IS 14581 (2006): Guidelines for formulation and operation ...A suggestion scheme is a management encouraged scheme through which the employees can offer their ideas voluntarily for
Page 3: IS 14581 (2006): Guidelines for formulation and operation ...A suggestion scheme is a management encouraged scheme through which the employees can offer their ideas voluntarily for
Page 4: IS 14581 (2006): Guidelines for formulation and operation ...A suggestion scheme is a management encouraged scheme through which the employees can offer their ideas voluntarily for

IS 14581:2006

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Indian Standard

GUIDELINES FOR FORMULATION AND OPERATION OFA SUGGESTION SCHEME IN AN ORGANIZATION

(First Revision )

[Cs 03.100

0 BIS 2006

BUREAU OF INDIAN STANDARDSMANAK BHAVAN, 9 BAHADUR SHAH ZAFAR MARG

NEW DELHI 110002

December 2006 Price Group 3

Page 5: IS 14581 (2006): Guidelines for formulation and operation ...A suggestion scheme is a management encouraged scheme through which the employees can offer their ideas voluntarily for

Management and Productivity Sectional Committee, MSD 4

FOREWORD

This lndian Standard (First Revision) was adopted by the Bureau of Indian Standards, after the drafl finalizedby the Management and Productivity Sectional Committee had been approved by the Management and SystemsDivision Council.

A suggestion scheme is a management encouraged scheme through which the employees can offer their ideasvoluntarily for rectification of deficiency, improvements leading to better method of work and/or financial savings,better work culture and environment.

Suggestion scheme is a total employee involvement programme. The progress of the organization depends upon thecreative ability of its employees and this directly contributes to the enrichment of the organization. It is a mediumthrough which the hidden ideas in a person are brought out and put to meaningful and productive use for the bettermentof the organization.

It is believed that every individual will find his work more meaningful and challenging when he is given the opportunityto make continuous improvement and create value to it. The objective of the scheme is to enthuse employees to comeforward voluntarily with suggestions that they have in mind which could contribute to the enhancement of production,safe work practices, quality, cost/waste/overhead reduction and conservation of the environment, etc.

Cooperation fkomthe employees and sustained support from the top management, apart flom total involvement of bothin all events connected with suggestion scheme are the main pillars on which suggestion scheme is built. It provides adirect upward communication channel for the employees to put forward their ideas and thus providing an openenvironment.

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IS 14581:2006

Indiati SYmdard

GUIDELINES FOR FORMULATION AND OPERATION OFA SUGGESTION SCHEME IN AN ORGANIZATION

(First Revision )

1 SCOPE

This standard provides guidelines for the formulation andimplementation ofa suWestion scheme in an organization.

2 AIMS OF SUGGESTION SCHEME

2.1 A suggestion scheme is a formal mechanism, whichencourages employees to contribute constructive ideasfor improving their organization including its workingenvironment.

2.2 The main emphasis of the suggestion scheme is howto motivate employees and contribute to the managementof change. It basically aims to generate ideas fromemployees at all levels in order to improve standardizedprocedures for enhancing productivity, quality and costreduction. However, the success of such schemes dependson the commitment of the top management.

2.3 In the context of employee involvement process,suggestion scheme fidtills a variety of purposes. It can;

a)

b)

c)

d)

e)

o

drive both employee involvement and workimprovement,

improve both organizational and personalperformance,

embrace both the team and individual,

look at the strategic value of an idea as being bothtangible and intangible,

help in identi~ing ways for design and developmentof knowledge management systems, and

help in identifying and encouraging creative talentin the organization.

2.4 The critical success factors for any suggestionscheme will be:

a)

b)

c)

Employee creativity, innovativeness and his/herparticipation;

Top management’s continuous support forproviding a conducive climate for nurturing thesuggestion scheme and a periodic review by themof its fimctioning;

Quality evaluation of the suggestions; and

d) Management’s encouragement to employees togive suggestions.

2.5 The major indices of success of such a scheme are:

a)

b)

c)

d)

e)

o

Number of employees participating in a yearvis-d-vis total number of employees,

Tangible savings accrued per year,

Intangible gains,

Number of suggestions received and accepted,

Number of suggestions implemented out of theaccepted suggestions, and

Time taken for evaluation of suggestions.

3 DEVELOPMENT/AREAS OF SUGGESTIONS

3.1 The progress of an organization comes through wellimplemented good ideas. Any idea to improve upon anexisting condition can be turned into a suggestion. Forevolving effective suggestions, some of the questionsthat can be asked are given as follows:

a)

b)

c)

d)

e)

f)

[s this activity/process necessary?

i)

ii)

iii)

iv)

v)

vi)

Can it be eliminated?

Can it be simplified?

Can it be combined with some other activity?

Can it be split?

Can the split of the activity benefit?

Can the effort and time be reduced?

vii)Can the sequence of activity be changed forthe better?

1s there any wastage of resources?

i) Can it be avoided?

ii) Can these resources be more optimally utilized?

Are there any unsafe equipment or practice? Cansuggestions be made regarding their safetyaspects?

Can it improve the service/product quality, servicestandard or cut down service time?

Can it improve process efilciency?

Is there any scope for improvement in housekeepingor environment?

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IS 14581:2006

3.2 Some more questions that can be asked with respectto theare:

a)

b)

c)

d)

e)

f)

reduction in the amount of paper and paper work

Can the number of copies be reduced? Doeseveryone receiving copies really require thatinformation?

1sthere any duplication of information?

Can the information provided in different forms becombined in one?

Can the processing of documents be made faster?

Is all the information relevant?

Can the paper work be reduced or eliminatedthrough use of alternate mode like electronic media,etc.

3.3 Suggestions can also be made with respect to thesatisfaction level of the customers, by asking the followingquestions:

a)

b)

c)

d)

Are your customers, both internal and external,satisfied?

Does your organization have a formal mechanismfor assessing this?

Is there any procedure for taking follow-up actionon complaints and dissatisfaction of the customers?

1s there a mechanism for utilizing thefeedback received from customers for continualimprovement?

The answer to these questions will lead to generation of anumber of effective suggestions.

3.4 The suggestions can be made in the following areas:

a)

b)

c)

d)

e)

f)

g)

h)

j)

k)

Building up a better image~f the organization;

Achieving organizational goals more effectively;

Quality issues;

Improving productivity;

Improving working processes and procedures,including communications;

Reduction in input cost, wastefil expenditure andwastages;

Development of HR and increasing morale,motivation and job satisfaction;

Standardization and variety reductiotienhancementwithin the organization;

Economic indigenization;

improving environment both at workplace andsurroundings including health and safety;

m) Improving customer satisfaction;

n) Improvement in service level; and

p) Improvement in product design and development.

3.5 The following areas are excluded from beingconsidered as an eligible suggestion:

a)

b)

c)

d)

e)

Suggestion on organization’s/Government policies,etc;

Personal grievance or complaint regarding wage,promotion or any other;

Suggestions already received under the scheme;

Collective bargaining matters; and

A criticism directed at other statYemployee.

4 SUGGESTION EVALUATIONCOMMMTEE

4.1 A suggestion evaluation committee should beconstituted by the organization comprising senior levelpersons or nominated representatives drawn from variousdisciplines, who should be assigned the task of assessingthe practicability including accrued savings, one time orrecurring, from the suggestions and recommend awardson merit. The departmental head of the suggestor shouldbe a co-opted member in the Committee. One of themembers of this Committee should be designated ascoordinator. All suggestions should be forwarded to thecoordinator, who will be assigned the task of operatingthe suggestion scheme within the organization.

4.1.1 However, in case of large organizations, department-wise coordinator could be designated for better handlingof the suggestion scheme. A centralized online systemcould be developed in which the departmental coordinatorcould enter the suggestions received fkomthe departmentalemployees. The online system should have debils of thesuggestor, the date of suggestion proposal, suggestiondetails and status of suggestion. This will avoidmisunderstanding and provide record of origin in case ofoverlapping suggestions. These suggestions should beforwarded to the coordinator for consideration of thesuggestions evaluation committee.

4.1.2 Since the suggestion scheme is a total employeeinvolvement programme, the organization should devisesuitable mechanism to ensure impartiality, objectivity andtransparency of the suggestions evaluation process.

4.2 The responsibilities of the coordinator should be asfollows:

a)

b)

c)

Responsible for interacting between the suggestionevaluation committee and the suggestor.

To receive all suggestions and immediatelyacknowledge in the prescribed format along withthe serial number allotted. A single suggestionproposed by two or more people jointly should alsobe admissible and a single acknowledgement shouldbe issued to the first person or team leader.

To scrutinize these suggestions for their eligibility

2

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‘d)

e)

o

g)

and put up only eligible suggestions to thesuggestion evaluation committee.

To maintain records of all suggestions received/scrutinized.

To compile the suggestions received and convenemeeting of the suggestion evaluation committeefor assessment of the suggestions andrecommendations.

To inform the suggestor about the status of theaccepted suggestion from time to time, in case theevaluation takes a considerable time, otherwise toinform the suggestor about the result of theevaluation.

To carry out all such acts that calls for smoothfunctioning of the scheme.

4.3 The responsibility of suggestion evaluationcommittee should be:

a)

b)

c)

d)

e)

o

to meet at periodic intervals for evaluatingsuggestions.

to co-opt experts for assessing certain suggestionsrequiring specialized knowledge.

to have a positive approach to all the suggestionsand recommend awards on merits.

to obtain from the suggestor, if required, firtherdetails/clarifications about his suggestion.

to make final recommendation of the award.

to maintain confidentiality till such time the awardsare disbursed.

g) to ensure implementation of the suggestion at the

h)

.0

k)

earliest.

to get feedback on suggestions implemented andrecommend necessary changes, if needed.

to periodically provide feedback of the scheme tothe top management for ensuring its continuedeffectiveness, suitability and also for continualimprovement.

to notify the rejected suggestions, with a note of

IS 14581:2006

5.3 Each suggestion may be submitted separately in theprescribed form.

5.4 Suggestions could be placed in the suggestion boxinstalled by the organization at conspicuous places.Suggestions can also be forwarded by any other modeincluding electronic.

5.5 The suggestions may be given in simple English orHindi/local language. It should describe the existingmethod, the proposed method and an explanation as towhy this suggestion is better. If necessary, sketcheslflowdiagrams may be made to explain the ideas,

5.6 While suggestions necessarily mean employeescoming forward with a solution to a perceived problem, attimes, an employee may perceive a problem for which he. .may not have a direct solution to offer but the organizationmay be benefited once the problem is solved. Thesuggestor may have only some sketchy idea regardingthe solution. In such cases, a senior officer of thatdepartment may be deputed to help the suggestor incrystallizing his thoughts and giving the suggestion tothe coordinator. In a large organization, this may be acontinuous process and separate officers ti-om differentdepartments may be earmarked for this purpose. Theinformation regarding previous suggestions should bereadily available to employees for guidance and to avoidduplication of efforts,

6 CRITERIA FOR EVALUATION

encouragement to the suggestor(s) for theircontinued participation.

5 RECEIITOFSUGGESTIONS

5.1 Suggestions can be given by individual/group ofemployees of the organization. The organization maydecide to consider suggestions received from their retiredemployees.

5.2 The suggestion forms may be printed in English andHindi/local language which may be used for receivingsuggestions ffom the employees. Atypical form is giveninAnnex A as an example.

6.1 As a first step, an employee should be made aware. .about this scheme and its benefits. A conduciveenvironment must be created and the employee must beenthused to participate wholeheartedly. Encouragementto the suggestor(s) by a suitable reward along with theacknowledgement of eligible suggestion will go a longway in achieving this goal.

6.2 The basis for selecting the suggestions for awardshould be improvements proposed in any areas ofsuggestions given under 3.4. The Committee should notmake comparative evaluation of the suggestions receivedbut each suggestion should be evaluated on its own merit.Various criteria could be used forgiving consideration forselection of suggestion like,

a) reduction in input cost in areas like men, material,machine and money leading to;

i) Cost savings per annum.

ii) Foreign exchange savings (recurring/non-recurring).

iii) Cost reduction.

iv) Quality improvement.

v) Productivity improvement.

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IS 14581:2006

b)

vi) Improvement in service levels.

vii) Ingenuity of suggestion (depth of study).

viii) Applicability (in work area/entire plant).

Improved productivity by way of reduction inwastage, wastefil expenditure, improved systemsincluding for marketing, etc.

6.3 Similar type of suggestion received tlom two or moreindividuals/team should be decided on first come firstserve basis for evaluation of suggestions.

6,4 The suggestion could be rejected for any of thefollowing reasons:

a)

b)

c)

Suggestion is not feasible and/or implementable;

New method may be a safety/health/enviromnentalhazard; and

Cost of implementation outweighs the benefits.

6.5 The suggestion evaluation committee constitutedabove, will be empowered to judge and select thesuggestions for the award. In case there is a need to modi~the suggestion for its effective implementation, thesuggestion evaluation committee may do so in consultationwith the respective departmental head. Specified timenorms should be laid down for evaluation of suggestionsreceived.

7 RECOGNITION AND REWARD

7.1 The type of award/appreciation should be decided bythe Committee depending on the merit of the suggestion.

7.2 The employee, whose suggestion has been acceptedfor implementation by the suggestion evaluationCommittee, should be suitably awarded appreciated. If,the suggestions given by a team are accepted forimplementation, equal credit should be given to each teammember for award, etc.

7,3 The names of the employees, along with theirphotographs, whose suggestions are accepted, may beprominently displayed on the notice board for a specifiedperiod. They may be suitably recognized in housemagazines, news letters, etc, and the same may also bereflected in their annual appraisal report.

8 IMPLEMENTATION

8.1 The suggestions accepted for implementation shouldbe forwarded by the coordinator to the concerneddepartment(s) along with the specified time period forits implementation.

8.2 The concerned department, dealing with the activity

relating to the suggestion which has been accepted,should take necessary steps to implement the suggestionsand send a progress report of implementation to thecoordinator.

8.3 If the concerned department is of the opinion that itwould take some more time to implement the suggestion,the same may be conveyed to the coordinator, If there isneed for modification, he may do so under intimation tothe coordinator.

8.4 The coordinator should submit a report on progressof implementation of the accepted suggestions to thesuggestion evaluation committee during its meetings.If considered necessary, on review of position ofimplementation, the Committee may request the respectiveactivity heads for expediting implementation of thesuggestion. The coordinator should receive feedback onsuggestions implemented and review for changes, ifrequired.

9 KEY TO SUCCESS OF SUGGESTION SCHEME

9.1 The following key factors like proper organizationalsetup, open management, systematic procedures,encouragement to the employees, proper communication,timely evaluation, availability of resources, proper publicityof the suggestions, attribute towards the success of asuggestion scheme in an organization. Therefore, themanagement should help and encourage the employees inthis regard by fostering a conducive atmosphere for propernurturing of the suggestion scheme in the organization. Itshould periodically review the suggestion scheme, as oneof the organization processes, for continual improvement.

9.2 However, the suggestion schemes that encouragesstaff to come forward with ideas can fail miserably if theyare not managed properly, leading to loss of morale andproductivity- Badly-run schemes can lead to apathy,~esentment&d people working less effectively. Some ofthe common deficiencies observed are as follows:

a)

b)

c)

d)

e)

o

A lack of commitment and support from topmanagement;

Failure to follow-up suggestions;

Poor communication about progress to thesuggestor;

Continuously rejecting ideas;

Failure to recognize the contribution for ideas; and

Dumping all ideas only on one person to deal with,etc.

Therefore, while reviewing the scheme, the organizationshould also look for above factors and try to correct thedeficiencies observed as a measure of continualimprovement.

4 .

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ANNEX A(Clause 5.2)

AN EXAMPLE OFATYPICALFORM FOR RECEIVING SUGGESTIONS FROM EMPLOYEES

Name and Designation

Employee IDNo.

Present Department

OffIceAddress for Communication

Residential Address for Communication(in case of retired employee)

E-mail

Office Telephone No.

Personal Phone No.(in case of retired employee)

Area of Suggestion

Suggestion and Advantage on its [implementation(Enclose details analysis/ sketch/justification, etc,on separate sheets, if required)

..........................................................................................................

..........................................................................................................

; ..............................................................................................................................................................................................................................................................................................................................

: ..............................................................................................................................................................................................................................................................................................................................

: ..........................................................................................................

..........................................................................................................

..........................................................................................................

..........................................................................................................

(Signature)Date:

For Official Use Only

Suggestion Serial No.

Acknowledgement Reference Letter

5

dated

Page 11: IS 14581 (2006): Guidelines for formulation and operation ...A suggestion scheme is a management encouraged scheme through which the employees can offer their ideas voluntarily for

Bureau of Indian Standards

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This Indian Standard has been developed from Doc : No. MSD 4 (302). ,

Amendments Issued Since Publication

Amend No. Date of Issue Text Affected

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