Suggestion System

Posted in Human Resource Terms, Total Reads: 226

Definition: Suggestion System

The process by which the ideas, proposals, suggestions, views etc of the employees of an organisation are transferred up to the higher management.


This two-way channel of communication is really fruitful for employer and the employee. The employee feels engaged and valued, whereas the employer understands what is really going on in the minds of the employees and also gets new ideas. These suggestions help increase - efficiency, performance, safety, quality of product and service. They also help decrease - waste.


In the times of integrated information systems, suggestion systems become even more impactful and meaningful. Data can be easily be exported across knowledge systems and used for collating and executing the suggestions. The administrator for the suggestion system can also regulate the authority for who can refer to these suggestions. The senior management can also directly and incrementally refer to these online suggestion systems.

These suggestions are also a parameter for reward in few organisations. Employee who gives the most effective or innovative suggestion is given a reward. This in turn gives an incentive to the employees.


The concept of suggestion system was introduced by General Electric in the year 1906. One employee was fired for giving in his views and making a suggestion to improve the manufacturing process in the plant. Post this, the system of suggestion box was put into place. A notepad and pen was stationed outside each department, with a suggestion box next to it. The employee was to write in their suggestions and then put them into the box. The manufacturing and other operations of the company improved.



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