Generating ideas and managing suggestion systems in organisations : some empirical evidence

Methods used to generate ideas and suggestions differ. It is generally accepted that employees from all levels in the organisation are involved in the design, but the respondents have different opinions. Suggestion systems consist of formal procedures; its success will depend on a number of factors. It should be explained during the induction process. This paper reports on research of suggestion systems executed through qualitative research with structured interviews in 21 organisations in New Zealand of which 90.48% are from the private sector and 9.52% are from the public sector. A 100% response rate was achieved. To train all the people involved will help to be effective in the Idea Generation Programmes. Software should be used to administer and to manage the process effectively and efficiently. A flow chart was developed by the authors to assist with the generating of ideas system. Line managers should authorise implementation of suggestions. Due to financial issues, higher level approval is needed for rewards as well as for suggestions that could have implications on corporate level. It was found that managers will always play a pivotal role in the success of the suggestion system. Important issues are pointed out in the implications for managers section. INTRODUCTION In a global competitive business environment, where product lifecycles have shortened, businesses need managers and employees that are highly capable, multi-skilled and competent to maintain their competitive advantage. The global market and the global environment must be managed by knowledgeable managers and committed employees who will give their best to the organisation. Therefore a profound re-think of suggestion systems and what to do with the information gathered from employees is necessary to increase profits, retain the workforce and sustain their competitive advantage. In order to survive in the current competitive economies globally, organisations should use any possible management tool that contributes to their survival. One of the most under-valued management tools available is the suggestion system; such a system consists of a formal procedure which encourages employees to think innovatively and creatively about their work and work environment, and to produce ideas which will benefit the organisation for which the employee will receive recognition, in one or another way, if the ideas are useful for the organisation. The success of the system will, however, depend on a number of factors, such as idea creation programmes, training