Gainsharing
How does a team-based suggestion system work? First, teams are formed in order to gather suggestions from employees on ways to improve, (in other words, suggestions on how to work "smarter"). To avoid unnecessary bureaucracy, most companies ask managers/supervisors to lead departmental teams whose goals mesh with the overall objectives of a company’s Gainsharing plan. The teams are permanent groups. The teams meet on a regular basis to discuss the ideas and suggestions. They make decisions on approving or declining the ideas. Also the teams are given limited spending authority to approve and implement the suggestions. Suggestions that are approved by a team, but are beyond their spending authority, are advanced to a higher level in the organization for final approval. Unlike a traditional suggestion system, a team-based system does not provide individual monetary rewards. This is because everyone works together and shares in the gain together. Gainsharing is not an individual incentive plan.