Lawler, Edward E. III, and Susan A. Morhman. 1985. "Quality Circles After the Fad." Harvard Business Review :65-71.

Quality circles have their advantages but there are several factors that cause them to self-destruct.

Quality circles are group suggestion programs. Programs in Japan give greater emphasis to statistical quality control, employees meet on own time, and all employees receive a bonus for the performance of the entire organization.

In the US quality circles operate somewhat independently from the existing organization. By 1982 44% of bigger companies (>500 employees) had quality circles. 90% of Fortune 500. Their popularity is partly due to Japan's competitive success led to copying. The programs are accessible from consultants as turnkey training/set up. They don't involve everyone giving management some control. Finally they have no direct decision-making power and can be eliminated when troublesome. They give "legitimacy" within quality movement.

Circles are often something the "top told the middle to do to the bottom".

Developing a QC Program

Stages:

Start-up phase

Few threats, relatively easy set up.

Initial Problem Solving

Little trouble, groups start to find problems to solve.

Presentation and approval of solutions

Usual positive approval, though middle managment resists often. They feel pressure to accept initial suggestions to keep program afloat.

Implementation of Solutions

Requires money and resources sometimes lacking. Often suggestions eventually not implemented.

Expansion & continued Problem Solving

New groups added, old ones phased out. If highly successful there can be jealously between insiders and outsiders. Success may raise group aspirations. They run out of easy problems to solve. They may ask for financial rewards. Expanding program may require excessive resources. Solutions are almost always too optimistic and expected savings not realized.

Decline

They meet less often, less productive, resources go away. Groups not satisfying anymore. Open rejection ensues.

How to Best Use Quality Circles

QC are unstable organizational structures. Sometimes its best to create them, get some ideas, and then stop them. Rotate members.

Special projects

Use them for temporary issues.

Transition Vehicle

In moving to a participatory management system.

Interorganizational groups seem to be no more stable than homogeneous groups.