Impact of Quality Circle Activities in Manufacturing Companies * Dr.S.Subbulakshmi ** Dr.G.S.Subashini *** Dr.R.Vasumathi, ABSTRACT Quality circle (QC) is a mechanism whereby workers are able to participate in the problem solving process which leads to improvement of quality and productivity in their organization.the philosophy of quality circle is to focus on the development of the individuals. If individuals are developed they will inturn develop the organization. The Japanese saying is that Before developing the product, develop the people.many industries are practicing quality circle concepts for development of people who can produce quality products, services and job. The main aim of this study is to analyze the impact of quality circle activities among QCs members in manufacturing companies. Correlation and multiple regression analysis have been used to study the impact of QCs activities. Result of the analysis reveals that there is positive correlation among QC activities and selected individual variables. It also indicates that 33 percent variations in QC activities have been influenced by participation in decision making, job satisfaction and commitment.finally the result shows that quality circle activities have greater impact among members of QCs in manufacturing companies. Key words: quality circle activities, job satisfaction, commitment and participation in decision making. INTRODUCTION The world of business is changing with multiple resources to establish them as the paramount in aggressive period. No individual can achieve this aggressive era independently, so they need the support of technology and human resources. There are numerous systems to operate technology, but the issue is effective utilization of human resources and it is also considered as valuable asset in business to attain competition. Human resources can be effectively utilized through participative management. Some authors (e.g., David et al., 1995; Patria, 2001) *Dr.S.Subbulakshmi, Assistant professor Department of Business Administration Annamalai University,Chidambaram, Tamilnadu, India. Email: subbumohan23@gmail.com **Dr.G.S.Subashini, Assistant professor Department of Business Administration Annamalai University,Chidambaram, Tamilnadu, India. ***Dr.R.Vasumathi, Assistant professor Department of Business Administration Annamalai University,Chidambaram, Tamilnadu, India.
specifically argue that participative management is one way in which organizations can achieve the responsiveness needed in a hypercompetitive world. In today s intensely competitive global environment, there is a strong demand for workforce participation in organizational decision making to enhance individual performance, also enabling the achievement of the higher productivity of an organization. The literature reviews address quality control circle (QC) is the one of the employee participation technique that has been advanced as an effective technique for rectifying both quality and productivity concerns. Practicing quality circles concept helps the people to acquire knowledge in problem solving process and continually improve their skill for their self and mutual development. It gives opportunity to show their capability, hidden talent and creative thinking. This philosophy is, if we focus on the development of individual, individuals so developed will develop the organization. That is why Japanese say Before developing the product, develop the people. Since QCs is a collective work of the employees, the success depends largely on the organization s support, members participation and role of organisation in knowledge dissemination among members of QCs. Successful quality circle helps in upholding the morale, job satisfaction of members, team spirit, commitment towards organisation and participative partnership of the employees in decision making of organization. There are many studies related to outcomes of quality circle and this study specifically tries to identify personal benefits of members through practice of quality circle in manufacturing companies. Though members have many personal benefits through practice of QCs, the researcher has identified job satisfaction, commitment,participation in decision making as most important benefits. Further, the researcher made an attempt to test their relationship with quality circle activities in manufacturing companies. LITERATURE REVIEW Before exploring the result of the study, a brief review related to influence of QC activities on job satisfaction, morale, commitment and participation in decision making of QCs members in manufacturing companies were precisely examined. Quality circle activities T. R. Abo-Alhol (2005) have identified that QCs promotes positive results when this participation technique is used either in manufacturing or in service sector. The assessment of study includes technical aspects, length of participation, training, members feelings about QCs, job satisfaction and job commitment. Results reveals that Industrial QCs members were more enthusiastic than service QCs members in terms of involvement in QCs activities and show higher job satisfaction and job commitment compared to members in service organizations. M. Y. Ismail (2006)results show that QCs develop positive attitude among employees who derive job satisfaction when they feel that their companies are good place to work consequently employees are willing to extend more efforts for their companies. AzadehTourani (2012) findings of the study suggest that both employees participation and communication have significant and positive effect on employees job
satisfaction. Also stated that perceived supervisor communication competence and supervisor satisfaction as a function of Quality Circle Participation. Job Satisfaction Komal Khalid Bhattiet.al., (2007) the findings of the study reveals that employee participation not only an important determinant of job satisfaction components. Increasing employee participation will have a positive effect on employee s job satisfaction, employee commitment and employee productivity. Naturally increasing employee participation is a longterm process, which demands both attention from management side and initiative from the employee side. Serene Yap lay siew (2011) reveals that among the independent variables, participation is considered the most important independent variable that could impact and contribute towards the job satisfaction of employees within the category of executive level. Subbulakshmi.s et.al, (2014) analysed the impact of employee communication and quality circle on job satisfaction. The finding suggests that both communication and quality circle have positive effect on job satisfaction. Finally the article gives suggestions to improve job satisfaction through communication and quality circle. Commitment Samuel O Salami, (2005) explored the relationship among participation in decisionmaking process, incentives, training and organizational commitment of industrial workers and the result indicates that each of the factors made significant contribution to the prediction with participation in decision making taking the lead followed by incentives and training coming last. Based on the findings, it was recommended that organizational managements should give adequate attention to the motivational factors so that the workers could improve their organizational commitment. Varsa Dixit et.al., (2012) the findings of the study has been proved that sustained productivity is strongly related to employee commitment. So, the sample organization has to focus towards increasing employee commitment. This shall have a great impact and take the organization towards competitive edge. Participation in Decision Making Shadur (1999) reveals in his study that there is an assumption held by many scholars and managers that if employees are adequately informed about matters concerning them and are afforded the opportunity to make decisions relevant to their work, then there will be benefits for both the organisation and the individual. Anowar Hossain Bhuiyan (2010) have quoted that participation in decision making in industry results in satisfaction of employees and an increase in productivity and profit. The study result revealed that there is a significant positive correlation between decision making, motivation and performance. Subbulakshmi.s et.al, (2014) have revealed in the study that human resources can be effectively utilized through participative management and this could be achieved by implementing quality circle in organization, employee participates in decision making of management through quality circle. Though there are many variables which influence
participation in decision making, researcher have chosen attitudes of quality circle, training and length of membership as influencing factors. Results emerging from analysis show that there is significant relationship between all four variables. METHODOLOGY Objectives of the study The main purpose of the study is to examine the impact of quality circle activities among QCs members in manufacturing companies. 1. To find out the relationship between QC activities and job satisfaction, commitment, participation in decision making among members of QCs in manufacturing companies. 2. To study the influences of quality circle activities on job satisfaction, commitment and participation in decision making among members of QCs in manufacturing companies. Hypothesis of the study There is no positive relationship between QC activities and job satisfaction, commitment, participation in decision making among members of QCs. QC activities have no significant effect on job satisfaction, commitment, participation in decision making among members of QCs. Sampling technique: The researcher has chosen convenience sampling technique, since it is easiest technique to reach the population. Sampling size: Two hundred and ten members of quality circle from eighteen manufacturing companies have chosen for this study. Data collection: The data are collected from both primary and secondary sources. Primary data are collected through standard questionnaire and the secondary data is collected from books, magazines, and websites etc. Research instrument: The researcher has used four variable quality circle activities, job satisfaction, commitment and participation in decision making, researcher used standard questionnaire for all the variables. Five items of Steel and Mento (1987) were used to measure participation in decision making. To measure quality circles activities researcher have used questionnaire framed by Lee l.shaw (1988).Job satisfaction questionnaire by Minnesota satisfaction questionnaire (MSQ) developed by Weiss, Dawis, England and Lofquist (1967).Organizational commitment questionnaire (OCQ) developed by porter et. al., (1974); Meyer and Allen (1997). Statistical tools: Multiple Regression analysis and correlations have been used to test the raised hypothesis. RESULT AND DISCUSSION This section will highlight and discuss about the results and finding of the study. The intention of this study is to determine the impact of quality circle activities among members of QCs in manufacturing companies. Results emerging from analysis show that there is significant
influence of QC activities on job satisfaction, commitment and participation in decision making among members of quality circle. The following table and its result will reveal the relationship between selected variables. Demographic variables For this study data were collected from members of quality circles in manufacturing companies, initially in this data analysis, 80.5 percent of the population are male and 25.7 percent of members are in the age group of 26 to 35years.41.4 percent members are graduates and 34.8 percent members are working as managers. 46.2 percent members are from production department and 33.8 percent members are having more than 15 years of experience. Table-1: Descriptive statistics for QC activities, job satisfaction, commitment and participation in decision making. Variables Low level Moderate level High level Mean S.D N % N % N % QC activities 5 11.9 156 74.3 29 13.8 26..17 3.28 Job satisfaction 10 5 178 85 22 10 37.62 5.29 Commitment 3 2 97 46 110 52 21.82 3.47 Participation in decision 3 1 66 32 141 67 27.07 4.61 making Source: Primary Data It is exposed that 74.3 percent of the member accept that moderate level quality circle activities is practised in their organisation. Since performance of quality circle and management support are moderate quality activities of organisation is also moderate. When there is improvement in performance and management support for quality circle, the activities of quality circle will be improved consistently. From the table-1 it is understood that 85 percent of members have moderate level of job satisfaction. The result reveals that 52 percent of members were highly committed towards organisation. It is also revealed that 67 percent of members accept that there is high level of participation in decision making. Table -2: Correlation between quality circle activities, job satisfaction, commitment and participation in decision making Variables Quality circle activities Job satisfaction 0.516** Commitment 0.498** Participation in decision making 0.532** Source: Primary Data ** Correlation is significant at the 0.01 level (2-tailed)
Table-2 show a positive correlation between quality circle activities and job satisfaction with r value 0.516 at 1 percent level of significance.result show that if QC activities increase job satisfaction will also increase.the result shows that there is a positive correlation between quality circle activities and commitment with r value 0.498 at 1 percent level of significance.result show that if QC activities increase commitment will also increase. The analysis also shows that there was a positive correlation between qualitycircle activities and Participation in decision making with r value 0.532 at1 percent level of significance.the Results show that if QC activities increase Participation in decision making will also increase. The overall result shows that there significant relationship among QC activities and selected individual variables, this result is also similar with the study of Grya (1981). Grya s study reported that workers believed participation in quality circles has resulted in improving their personal capabilities and self respect. Table -3: The multiple regression coefficients of QC activities by the selected independent variables S.No Variables Quality circle activities Constant 12.135 1. Job satisfaction 0.135 (0.219)* 2. Commitment 0.104 (0.198)* 3. Participation in 0.160 decision making (0.225)* R 2 0.331 Source: Primary Data * Beta value standardized coefficient A stepwise multiple regressions have been applied to predict the quality circle activities among members in manufacturing companies for that following three variables have been selected job satisfaction, commitment and participation in decision making. Though correlation coefficient reveal positive relationship between selected three variable, the step wise regression identified these three variables as most significant variables which has influenced quality circle activities. Among three variables the foremost variable is participation in decision making, job satisfaction and commitment is the third variable. The overall R 2 found to be 0.331 that is 33 percent of variation in quality circle activities has been explained by these three variables. The result also is similar to the study of Abott (1984), who has found that Quality circle members having high desire for participation were found to be more satisfied with their jobs as compared to those quality circles members who had low desire for participation. Another study of Srinivasan (1991) had also reported that quality circle has helped to impart creativity among workers and a sense of belonging to the organization. The result of the study is also supported by study of subbulakshmi.s et.al, (2014) who have indicated in her study that quality circle activities is one of the influencing factors of participation of decision making of employee.
FINDINGS The study has brought about significant findings on the quality circle activities in the organization. Here most of the respondents accept that a moderate level of quality circle activities are being conducted by the organizations and also feel that they are satisfied with their job at a moderate level. The commitment and participation of the employees are also at a moderate level, which shows that there is a need for improvement. The study highlights that organization need to come up with employee based initiatives or quality circle activities that would boost the job satisfaction and the commitment level of the employees. Through these activities the organizations could get each and every employee involved or a part of the organization by encouraging them to participate in the organizations decision making process. Statistical analysis was done to find the correlation between quality circle activities with job satisfaction, commitment and participation in decision making. The respondents feel that if the quality circle activities are improved, the commitment and job satisfaction of the employee will also improve. The statistical analysis has clearly portrayed that there is a significant relationship between quality circle activities and the other variables. The stepwise multiple regression also brought about a relationship between quality circle activities and job satisfaction as the members accepted that when they are participating in the quality circle activities they feel more confident and motivated which gives them immense job satisfaction making them a genuine part of the organization. CONCLUSION The study implies that quality circle activities have positive and significant relationship with job satisfaction, commitment and participation in decision making of QCs members. Through regression analysis it is implied that 33 percent variation in QC activities were explained by these individual variables. The result of the study suggested that members believed participation in quality circles activities has resulted in improving their personal capabilities and self-respect among other employees in manufacturing companies. It is also found from the result that members are willing to participate in QCs activities and management needed to supports quality circle activities by implementing suggestion taken by circle and providing due recognition for their contribution so that members will get the feel of high satisfaction in the work they perform. And it is also indicated that QCs activities provides sense belonging which improves commitment of members and it also encourage them to take part in decision making process of organisation.finally the result shows that quality circle activities have greater impact among members of QCs in manufacturing companies. Reference 1. Abo-Alhol T.R, M. Y. Ismail, S. M. Sapuan and M. M. Hamdan (2005) The effectiveness of quality circle participation in industrial and service organizations in Malaysia, Journal of Social Sciences 1 (1): 25-30, ISSN 1549-3652 Science Publications. 2. Azadeh Tourani, Sadegh Rast, (2012) effect of employees communication and participation Companies in Iran, 2012 2nd International Conference on Economics, Trade and Development IPEDR vol.36 (2012) IACSIT Press, Singapore doi: 10.1177/002194368902600202
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