Quality Circles (Management)

A quality circle is a device or tool used in businesses to improve productivity and job performance at work. Quality circles were first developed in post-war Japan as a means to boost the recovery of industry. However, they have also been used in a number of countries, including the United Kingdom and the United States. Quality circles in the 21st century are often included in broader total quality management strategies.

Usually quality circles within an organization are formed of groups of between three and 12 members which are assigned issues close to their job. Such teams should identify problems and discover long-term solutions, and are vested extensive authority. As employees are charged with problem-solving and overall improvement of the working process, quality circles represent bottom-up innovations in productivity management. Their effectiveness depends on the cooperation of managers, as it is up to them to provide for the implementation of solutions found by employees.

The idea of quality circles was born in Japan when the local scientists' and engineers' union was trying to fill in the gap between job design and actual work production. Japanese workers had shared work principles based on joint efforts and cooperation for centuries. Each member of the Japanese society has the duty to contribute to the progress and improvement of the community, rather than to compete with his or her colleagues. Employees are valued for their competences and skills and team success is highly appreciated by companies. Japanese companies aim at long-term success, therefore quality circles are constantly seeking improvement of the work process that would eventually help make better products. Quality circles gained great popularity throughout Japan and by the 1980s, five in six employees participated in such groups. Such innovation helped to make Japan's global reputation as manufacturers of a wide range of dependable goods, due to the high quality standards set by the Japanese industries.

The Japanese example served as evidence for the effectiveness of quality circles and soon various Asian and Western organizations tried to apply them. Studies into the implementation of quality circles outside Japan have shown less remarkable results, as managers were seeking short-term profits or implemented quality circle strategies only for a limited period. Although results vary between cases, researchers into quality circles have established that their effectiveness largely depends on the commitment and participation of members, who in the best case should be volunteers. Such involvement often depends on the cooperation of managers and their attitudes toward the efforts of employees. Besides, quality circle members should pass a necessary problem-solving training, while executive higher-ups should be able to implement solutions.

In the United States, quality circles have been integrated into total quality management systems, where they are usually acting as independent task groups. The focus of quality circles was shifted to employee training and creating stimulus for workers to take part in decision-making. At the end of the 20th century quality circles were also adopted in a number of U.S. federal agencies.

Studies have demonstrated that the concept of quality circles is differently understood and implemented both in the private and public sectors. However, there are certain common characteristics that quality circles within organizations share. Their structure resembles a traditional organizational pyramid with a steering or executive committee at the top. Quality circles outline the main quality improving efforts, coordinating and supervising them. A quality circle administrator takes care of the coordination between groups and between circles and the executive committee. A quality circle facilitator, on the other hand, assists group members in the application of specific tools and techniques and manages the problem-solving process.

The minimum necessary requirements for effective quality circles include:

members should join groups voluntarily;

members should agree and comply with general rules and norms of quality circles;

group members should accept and assist the quality circle leader;

members should cover training on the quality circle process, including problem solving and group dynamics;

members should know how to use quality circle tools and techniques in order to encounter and fix quality problems.

The ultimate goal of quality circles is to persistently increase the quality of offered products and services in order to best satisfy the customers' needs and expectations.

Selected full-text books and articles on this topic

The Key to Effective Quality Circles
Honeycutt, Alan.
Training & Development Journal, Vol. 43, No. 5, May 1989
Legal Traps in Employee Committees: Although Quality Circles Are a Popular Vehicle for Improving Productivity, They Can Violate Labor Laws
Girard-DiCarlo, David F.; Hanlon, Michael J.; Naidoff, Caren E. I.
Management Review, Vol. 81, No. 11, November 1992
What Really Goes Wrong with Participative Work Groups?
Hunt, Bradley D.; Vogt, Judith F.
Training & Development Journal, Vol. 42, No. 5, May 1988
Work Measurement and Methods Improvement
Lawrence S. Aft.
Wiley, 2000
Librarian’s tip: "Quality Control Circles" begins on p. 419
Managing Human Productivity: People Are Your Best Investment
Stephen J. Holoviak; Susan Stone Sipkoff.
Praeger Publishers, 1987
Librarian’s tip: Chap. 4 "Quality Circles: Can We Work Together?"
Corporate Communications: A Comparison of Japanese and American Practices
William V. Ruch.
Quorum Books, 1984
Librarian’s tip: Chap. 13 "Quality Circles in America"
Using Quality Circles to Develop an Action Plan Required for Leading Organizations
Allender, Hans D.
Industrial Management, Vol. 34, No. 5, September/October 1992
Differences between Active and Inactive Quality Circles in Attendance and Performance
Tang, Thomas Li-Ping; Tollison, Peggy Smith; Whiteside, Harold D.
Public Personnel Management, Vol. 22, No. 4, Winter 1993
Quality
John Beckford.
Routledge, 2002 (2nd edition)
Librarian’s tip: Discussion of quality circles begins on p. 97 and p. 250
Fordism Transformed: The Development of Production Methods in the Automobile Industry
Haruhito Shiomi; Kazuo Wada.
Oxford University Press, 1995
Librarian’s tip: Chap. 6 "The Development of Company-Wide Quality Control and Quality Circles at Toyota Motor Corporation and Nissan Motor Co. Ltd."
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