The Effectiveness of Idea Capture Schemes

Abstract

Innovation at work is mainly driven by employees' ideas. This paper reports a study of the effectiveness (e.g., rate of suggestion making) of schemes for capturing these ideas. Based on a survey of 182 UK organizations, the study shows that decentralized suggestion schemes and work-based systems are more effective than centralized and informal schemes. The extent of planning, publicity, feedback and management support given to the scheme, and the type of reward offered to employees, also independently account for variation in effectiveness. Publicity and non-monetary rewards, though, are found to be most decisive, regardless of scheme type. Learning culture also affects the rate of suggestion making, though the effect is greater for centralized and decentralized schemes than for the others. The key implication of the findings is that by paying particular attention to how they are advertised and how participation is rewarded, organizations could improve the return on their idea capture schemes.

The determinants for sustainability of an employee suggestion system

“…Therefore, employees need to be motivated and encouraged for their involvement and the involvement can be increased if employees develop a sense of belonging to the organization (Cruz et al, 2009). Employee's confidence on the organization also plays role in the success of the suggestion scheme (Bell, 1997;Islam, 2007;Lloyd, 1996;Carrier, 1998;Leach et al, 2006;Janassen, 2004). When employees see their suggestion is considered and applied in the workplace, they feel that they are valuable assets for the company, and they are more likely to show higher commitment (Cho and Erdem, 2006;Carrier, 1998).…”

“…If employees do not receive feedback they may feel the management may be taking credit from their suggestions (Mishra, 1994). The feedback on non-implemented suggestions can keep employees motivated toward the scheme (Cho and Erdem, 2006;Bakker et al, 2006;Buech et al, 2010;Leach et al, 2006;Powell, 2008;Rapp and Eklund, 2007;Arif et al, 2010;Hultgren, 2008;Fairbank and Williams, 2001;Stranne, 1964;Van Dijk and Van den Ende, 2002;Du plessis et al, 2008). Finally, feedback should be detailed enough to aid the personnel to know the status of their idea, how to receive the reward (if any) and if it was rejected (Verdinejad et al, 2010).…”

“…Finally, feedback should be detailed enough to aid the personnel to know the status of their idea, how to receive the reward (if any) and if it was rejected (Verdinejad et al, 2010). Moreover, providing feedback to employees on their ideas should demonstrate that the scheme is well run, thus facilitating sustained participation (Leach et al, 2006). The employee engagement improves when job-related feedback from supervisors and managers focusses on the strengths and not the weakness of employees (Attridge, 2009).…”

“…Innovation begins with creative ideas 182 IJQRM 32,2 (Amabile et al, 1996). The key assumption behind the use of suggestion systems is that there is a reservoir of ideas in companies that may remain dormant in the absence of such systems (Leach et al, 2006). Moreover, creativity is the basic human capability and suggestion systems have the capability of being all inclusive by being able to focus on capturing ideas from all staff, and not just ideas from few identified smart staff (Fairbank and Williams, 2001).…”

Innovative Behavior and the Reciprocal Exchange between Employees and Organizations

“…In the context of innovation management, organizations try to establish reward systems to foster creativity or innovative behavior among employees (Leach/ Stride/Wood 2006). Empirical findings on the effectiveness of rewards for creativity and innovative suggestions are, however, inconclusive.…”