Quality circles are small groups composed of volunteers who meet regularly to identify, analyze, and solve work-related problems. The goal is to improve quality, productivity, and morale. Quality circles originated in Japan as a way to involve employees in quality control and problem-solving. They have now spread to many companies worldwide.

1. PSB TRAINING ACADEMY
CONCEPT OF QUALITY CIRCLE
Concept of Quality Circles (QC): The concept of quality control originated in the U.S. and was
taken to Japan by W. Edwards Deming who marked the beginning of revolution in quality control.
As quality control awareness increased in Japan, the Japanese companies used statistical quality
control to motivate their workers to produce high-quality products.
One of the mechanisms used by these companies to improve the quality not only of their products
but also the personnel was quality circles which are in practice even today.
Quality circle is a group of labour and management who belong to a single department, do same
or similar work, meet periodically to discuss and analyse manufacturing problems (for about an
hour per week in paid time) and find solutions to quality problems.
QCs improve the quality of products and the work atmosphere as members feel they are an
important part of the organisation who can positively contribute to product quality. Though initially
started in the manufacturing area, the concept of QCs widely applies in service sector also
(banking, insurance etc.).
Process of operation:
The operation of quality circles involves a set of sequential steps as under:
1 Problem identification: Identify a number of problems.
2 Problem selections: Decide the priority and select the problem to be taken up first.
3 Problem Analysis: Problem is clarified and analysed by basic problem solving methods.
4 Generate alternative solutions: Identify and evaluate causes and generate number of
possible alternative solutions.
5 Select the most appropriate solution: Discuss and evaluate the alternative solutions by
comparison in terms of investment and return from the investment. This enables to select the
most appropriate solution.
6 Prepare plan of action: Prepare plan of action for converting the solution into reality which
includes the considerations "who, what, when, where, why and how" of solving problems.
7 Present solution to management circle members present solution to management fore approval.
8. Implementation of solution : The management evaluates the recommended solution. Then it
is tested and if successful, implemented on a full scale.

2. PSB TRAINING ACADEMY
Quality circles are regular short meetings that help to solve work-related problems.
(a) 5-10 people attend the meeting in work-time.
(b) Supervisor is nominated and he runs the meeting.
(c) Flip charts, audio-visual equipment, notice boards etc. are utilized.
(d) Problem areas are put forward by the group.
(e) Problems are prioritized.
(f) Information is collected, ideas are generated via brainstorming and force-field analysis.
(g) Effectiveness, costs, savings, consequences to other departments etc. are considered.
(h) Final solution is put forward to manager and implemented by the quality circle group.
Objectives of Quality Circles:
(a) To improve the quality of products.
(b) To improve productivity of the firm.
(c) To develop sense of confidence in the workers that they can solve their own problems.
(d) To improve employees’ morale.
(e) To improve employees’ job satisfaction.
(f) To develop the personality of employees by making them aware of their importance in the work
related areas and work atmosphere.
(g) To improve interpersonal relationship between management and workers.
(h) To improve employees’ motivation and communication within the organisation.
We can briefly explain the objectives as follows:
 Change in ATTITUDE – From I DONT CARE --TO --I DO CARE, continuous improvement
in quality of work life through humanization of work.

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 SELF DEVELOPMENT- Bringing out hidden potential of people, people get to learn
additional skills.
 Development of TEAM SPIRIT- Individual vs Team “ I could not do but we did it”
 Improved Organizational Culture- Positive work environment, involvement of people at
all levels, higher motivational level, participate management process.
Merits of Quality Circles:
Quality circles have the following merits:
(a) They focus on product quality in a planned way.
(b) They train employees to identify their problems, find solutions and implement them without
seeking the advise of technical experts.
(c) They satisfy members’ higher-order needs of recognition and self-actualisation.
(d) They improve members’ participation in work-related problems and enhance their job
satisfaction.
(e) They promote productivity, efficiency, cost reduction, design, testing, safety etc. of the
products.
(f) Since teaching is done in an informal way, employees are not burdened with analysing and
solving their problems. Rather, they feel motivated to offer suggestions to management.
Factors to Make Quality Circles Effective:
Quality circles are effective in achieving the goals if they are framed with the following
factors in mind:
(a) They start with the analysis of small problems and gradually move to bigger problems.
(b) Members of the QCs are voluntary and not mandatory to get their maximum support.
(c) Members of the QC are taught the basic techniques of problem-solving in an informal way.
(d) Before members’ proposal to solve the problem is put to implementation, it is checked by the
supervisors.

4. PSB TRAINING ACADEMY
(e) Management supports QC activities rather than leave them totally to the employees.
(f) Members are recognised for their contribution to organisational problems.
Though quality circles aim at improving organisational climate through constructive
workforce, it may not always be able to do so because of the following limitations:
1. Different attitude of managers and workers to perceive the same problem.
a. Higher level managers may find it as dilution to their authority for decision-making.
b. Workers perceive quality circles as contributors to organisational growth and profits and not
providing personal benefits to them in the form of sharing higher profits.
Workers and managers should view QCs as a positive contributor to organisation growth whose
benefits would be shared by both managers and workers and not by management only.
2. Workers may not have requisite knowledge, skills and qualities to analyse and solve the
organisational problems. They may prefer the directions to come from higher levels than to be
self-directed.
The very purpose of QC’s is to enhance the decision-making abilities of workers and therefore,
workers should be trained to make decisions on their own rather than depending on their
superiors.
3. Though workers give suggestions in QC, they may not be acceptable and implemented by the
management. This can affect the efficiency of QCs.
In case the suggestions are not worthy of implementation, managers should convince the
members in this regard. Workers should take the arguments positively rather than feeling offended
for the same.