The Quality Circle Phenomenon

Abstract

The importance of Human Resource Development Programs, which involve all levels of the work force in goal setting and problem solving, is achieving growing recognition throughout corporate American. Thirty-three percent of companies with over 500 employees and over half of New York Stock Exchange companies have introduced such employee involvement programs. In a study conducted by the New York Stock Exchange, Office of Economic Research in 1982, entitled People and Productivity; A Challenge to Corporate America, it was documented that such programs were initiated with the expectation of cutting costs (58%), improving worker attitudes (46%), and increasing productivity (38%). For over 50% of companies surveyed, this reflected a change in managerial philosophy. The same study found that 82% of companies considered employee involvement programs to be a promising new approach and not a passing fad. The sound business rationale which underlies this phenomena is evident when the outcome findings, reported by the companies who used such approaches, are reviewed. According to their own standards and measures, the companies report improvements in attitude and morale (67%), cost containment (56%), productivity (55%), quality (54%), service (53%) and quality of working life (48%).