It’s All About the People – How to Utilize Personnel’s Knowledge for Continuous Improvement
Employees have extensive knowledge of the organisation’s internal processes from the perspective of their own work. By effectively using this knowledge to develop operations, the organisation can improve its position in an ever-changing environment.
Continuous improvement is participative in nature and aims for systematic and continuous improvement in an organisation-wide context. One of the key mechanisms for driving continuous improvement is the employee suggestion scheme, which encourages employees to submit ideas for improving their jobs or other aspects of the organisation.
The active encouragement of employees to continuously improve products and processes dates back to the industrial revolution. (Singh & Singh, 2015). Throughout its history, continuous improvement has proven to be a powerful tool for enhancing organisational competitiveness. By leveraging the knowledge and creativity of employees, organisations can improve quality and productivity with relatively low investment.
“Continuous improvement is recognized as a low-investment method of rising quality and productivity.”
The use of employee knowledge to improve the competitiveness of an organisation is part of the continuous improvement philosophy. The successful integration of continuous improvement activities and the effective use of employee knowledge benefits the organisation and its stakeholders by enabling an effective use of resources without compromising quality.
The thesis explored the cornerstones of a functional employee suggestion scheme from different perspectives. The theoretical part focused on research findings from employee suggestion schemes, while the empirical part examined the practical aspects of the suggestion process.
Combining theoretical knowledge with practice, the key factors that characterise a functional suggestion process include:
Management support Commitment, involvement, encouragement, and guidance from management are key factors for a successful suggestion system. Establishing clear criteria for what constitutes a valid improvement suggestion focuses efforts on initiatives that would have the greatest impact.
Formal system A simple, location-independent submission process and a structured approach to handling and implementing suggestions help to ensure the sustainability of the suggestion process.
Training The aim of the training is to encourage employees to make suggestions for improvement, to provide tools for the successful implementation of these suggestions and to stimulate ideas for process improvement.
Reward scheme Recognition and rewards for suggestions increase employee engagement.
Standardised, clear processes for submitting, processing, implementing and monitoring development proposals, together with management support, training and employee recognition ensure a sustainable and efficient improvement suggestion process. Through a well-functioning suggestion scheme, an organisation can improve its operations and foster a culture of continuous improvement that benefits both the organisation and the customers it serves.
References
Rouhelo, J. (2024). Continuous Improvement – Employee Suggestion System. Master’s Thesis. Turku University of Applied Sciences. URN:NBN:fi:amk-2024090424762
Singh, J., & Singh, H. (2015). Continuous improvement philosophy – literature review and directions. Benchmarking: an international journal, 22(1), 75-119. https://doi.org/10.1108/BIJ-06-2012-0038
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