Abstract

Today's profit crunch caused by recession, inflation and increasing foreign competition is forcing many companies to look for measures to control costs, increase productivity and otherwise benefit their organizations. Fortunately, there has long been available to management a system that can assist in the attainment of such benefits for the organization. This approach also benefits employees through monetary rewards or intangible rewards such as individual recognition, improved working conditions and increased job safety. It is called the suggestion system. Basically, the suggestion system is a formal, definite procedure established and controlled by management to actively solicit voluntary constructive ideas from employees towards improving various aspects of company operations, services, or products and then to ensure the implementation of acceptable ideas while giving a suitable reward to the suggesting employee. The suggestion system can be a driving force within the firm and is one of the most powerful tools in giving employees a sense of belonging and a feeling of contributing to the welfare of their organization. Because the suggestion system has played such a vital role in encouraging and sponsoring ideas of employees, it has thereby helped to make major contributions to the abundant life one enjoys in the U.S.