A study of quality circles in Indian organisations

Abstract

Quality Circles (QCs) are credited with making substantial contributions towards prosperity of Japanese industries. In the last decade, QCs have spread to a large number of countries. In India, about 400 organizations have adopted QCs, with a total of 10,000 circles and involving about one lakh employees. Al though the stated objectives of QC movement are: improvement in quality, productivity, and quality of work life, QCs have been promoted as a panacea for all organizational problems. Empirical researches have, however, shown mixed results about the effectiveness of QCs. Review of literature also suggests that QCs are culture specific and may not succeed in all countries. It is in this context that the present study was envisaged to investigate QC movement and its effectiveness in Indian organizations. The study was carried out in two parts: (A) preliminary field study to understand the QC movement as practiced in Indian organizations: and (B) a field experiment to evaluate effectiveness of QCs. Study-1 The objectives of the study 1 were to understand: (a) nature of organizations operating QCs, (b) growth pattern of QCs, (c) organizational objectives for starting QCs, (d) kind of structures used for QCs, and (e) effectiveness of QCs in Indian organization. A three-pronged approach consisting of survey questionnaire, field visits, and interviews with experts on QCs was used for data collection. While 15 out of 48 organizations responded to the questionnaire, ten organizations were personally visited. In addition, the data from secondary sources were also used to supplement the findings. The major findings of the study are: (a) Quality circles in India are mainly operative in large and medium-size manufacturing organizations, predominantly in engineering, chemical, and textile industry, (b) The organizations, in public and private sector, which had experienced rapid growth of QCs, had technical collaboration with Japan and senior executive(s) from those organizations had observed QCs operating in Japan. Also, those organizations had implemented many OD/QWL interventions in the past with good records of success. (c)Many organizations had not clearly thought through the purpose of starting QCs and quality circles were started as a fad. (d) ln most of the organizations operating QCs, an elaborate administrative structure consisting of QC - coordinating agency, steering committees, area - coordinators, facilitators, and leaders was in existence. (e)The QC - coordinators, mostly from quality-control and its allied departments, had complained that the shop-managers did not take enough interest in QC activities. (f)Mixed evidence was found for success of QCs in Indian organizations. Lack of systematic training and facilities for conducting the meetings, lack of involvement of middle management, and the reward system for QCs were found to be some of the weak linkages of the QC movement. Study - 2 The Study 2 was designed to evaluate impact of QCs on quality, productivity, and quality of work life (QWL). The study was carried out in one division of a large public enterprise. QCs impact on productivity was evaluated using a ration of money saved by QCs to money spent on QCs. Quality improvements were evaluated with the assistance of technical experts. For evaluating impact on QWL, a non-equivalent control group design with pretest and post-test was used. Two instruments, developed fay Sash min and Lengermann (1985) for measuring QWL parameters, and one instruments developed by Wagner and Moch (1985) for measuring QC members' attitudes toward group working were validated and adapted for the present study. A total of 85 participants took the pre-test and 70 responded to the instruments again after an interval of about six months. Using ANOVA analysis, effectiveness of QCs was analyzed. The major findings of the Study 2 are: (a) Management support to QCs, reflected by training for QCs, facilities for conducting QC meetings, and interest taken by facilitator and QC members' superiors are necessary for effective functioning of QCs. (b) Out of four, two QCs functioned properly, solved some problems and improved productivity. A problem solved by one of the QCs had also led to improvement in product-quality. (c) While participation in properly functioning QCs can improve QC members' perceptions about their QWL parameters, an improperly functioning circle can very adversely affect QC members' perceptions about their QWL parameters. (d)Participation in QC activities may not help in improving QC members' attitudes toward group working. The study has highlighted that QCs are not cost-free. If they do not work effectively, they can have adverse impact on QWL parameters of the participants. Hence, an organization should not start quality circles because it is a fad. In the beginning, limited objectives of a QC movement can be, sharing of work related inputs by the supervisor with his workers and extensive training in problem-solving techniques. An organization starting QCs needs to ensure that QC meetings are conducted regularly. Proper facilities should be provided for conducting the meetings. The immediate superiors of QC members should take active interest in QC activities and should encourage the employees. Finally, an appropriate system for recognizing and rewarding the QC activities need to be designed and implemented.