Final Project

1.
INTRODUCTION
Quality circle is a management approach for an organization, centered on quality, based

on the participation of all its members and aiming at long-term success through customer
satisfaction, and benefits to all members of the organization and to society.
It actively has human capital embedded and not only stimulates commitment, integrity,
work-life balance, passion, enjoyment at work and employee attitudes, but also stimulates
individual and team learning in order to develop a motivated workforce and sustainable
performance improvement and quality enhancement for the organization.
The sample size taken for this study is 95. The respondent’s details includes Labours,
Technicians, Operators, Staff level employees, Managerial employees and others who
work in this Organization. The study has been conducted in AS-1, SHED-1, SHED-44
and HEAD OFFICE which are all situated Madurai. The researcher used census survey
where in the population elements are selected based on the particular units strength
entirely.
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1.1 NEED OF THE STUDY
The Quality Circle in HI-TECH ARAI LTD (HTA) running successfully. We need to
identify the attitude of QC members and Non-QC members of HTA. Even though the
organization maintain good Quality Circle, Some workers not yet joined. So that we need
to identify the reasons for not joining them as a member of the Quality Circle in our
organization
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1.2 STATEMENT OF PROBLEM
Attitudes are evaluating statements either favorable or unfavorable concerning the

respondents. They reflect how one feels about something they work for, but the reason
underlying the response are probably complex. In order to understand attitudes, we need
to consider their fundamental properties
Because of work load to the staffs in Head Office, they are showing less interest to
participate in QC activities. Hence collecting the information about Quality Circle, from
the Head Office- staffs was much complicated.
Collection of information from few employees was problematical, due to the lack of
Understanding and lack of knowledge about Quality Circle. The first major practitioner
knowledge gap we will address is the causes of employee attitudes.
1.3 COMPANY PROFILE
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HISTORY OF THE COMPANY:
Hi-Tech Arai limited Madurai, is a joint venture with Arai Seisakusho Co limited,
Japan. The company previously called as Hi-Tech ancillaries limited. After the joint
venture with Arai Seisakusho Co Limited, the company name has changed to Hi-Tech
Arai limited. The company was established rubber components and oil seals for the use
into the market with the World famous company like Suzuki, Honda, Yamaha, Niasion,
Toyota etc. The company was set up with an authorized capital of Rs.4.50 lakhs at 1985.
Later the company entered into technical collaborations with M/S Mitsubishi, Japan and
with Arai Seisakusho limited Japan for manufacture of reed Valve assembly in 1987 . Mr.
Bangera is the Managing Director of the company.. The company is leader in original
equipment marketing with 80% market share. The company was founded by Mr. R.
Lakshmi Narayanan, a pioneer in the area of rubber technology extended its capital base
with participation from the Chennai based Shriram group and it become a closely held
public limited company with its activities increased in all areas of manufacture. Growing
and achieving excellence through people is the motive of the organization. The core
belief is that it is possible to achieve zero defects and achieve leadership in the market.
The company also owns 17 wind mills each with the capacity of producing 6 MW power.
Hi-Tech Arai is the only manufacture of reed valves in India
MAN POWER
The company started its function with a man power of 75 in 1985. Now the total man
power of the company is 800. In additions to this, there are 1200 contract labours.
PRODUCTS:
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Closely supported by the Japanese partners, Hi-Tech Arai Limited has built a sustaining
and component technology base to the manufacture of oil
seals, valve steam seals, O rings, moulded rubber
components and reed valves assemblies to the highest
standards required by the automotive industry. The
company specializes in the production of three main
products for both original equipment manufacturers and
replacement market. The company caters to the domestic
market, though exports are also promising.
OIL SEALS
Oil seals are especially meant for preventing oil
leakages particularly in two wheelers, four wheelers and
in motor pump sets. Application of oil seals in these
products will prevent oil from leaking.
REED VALVE ASSEMBLIES

The reed valve assemblies that are produced by the
company are used in the new generation two stroke
engines as fuel-efficient equipment. It also saves a
substantial amount of foreign exchange for the country;
moreover reed valve assemblies ensure complete
combustion of fuel inside the cylinder thus helping to
control certain pollution.
MOULDED RUBER PRODUCTS

Moulded rubber products are the products developed to
suit the specifications and design of customers, so as to
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meet the exact working conditions of particular model of vehicles. Usually the moulded
rubber products reduce the noise, stroke vibrations and protect certain other components
from dust, water, oil etc. the company is the single source of supply for moulded products
throughout the country.
‘O’ RINGS
Circular products having round cross-section or any customers’ specified sectional from
which just fits in assemblies (pumps, carburetors etc to avoid or stop leakage of fluid gas
from the system.The export market for oil seals depend upon manufacturing technology.
Presently, there is no other player in the market who has a technical collaboration
arrangement with global player in this line of activity. This gives HTA an enormous
advantage over its competitors and its exporters to various countries.
Organization Structure:
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The organization is controlled by 9 boards of directors. It consists of 3 promoter
directors, 5 directors from Arai Seisakusho Ltd, and 1 director from Mitsubishi
Corporation. Mitsubishi Corporation has 1 additional director.
The current chairman of the organization is Mr. R. Lakshmi Narayanan and the
managing director is Mr. B. T. Bangera.
CUSTOMER OF HI-TECH ARAI:
The following are the customers of Hi-Tech Arai,

• Piagia (Italy)
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• Indore (France)
• Ashok Leyland Limited
• Bajaj auto Limited
• Bajaj Yamaha (Japan, India)
• Automotive axles limited
• Escort Limited
• Hero Honda Motors (Japan, India, Thailand, USA)
• TVS Suzuki
• Maruti Udyog limited and other leading companies
COMPETITORS OF HI-TECH ARAI:
• Fenner india
• C.R. Seals
• Sigma Fredenburg NOK Seals.
OBJECTIVES OF THE COMPANY:
• To maintain a good environment in the factory as well as in the factory premises.
• To produce and maintain quality in the products.
• To increase the sales every year.
VISION OF THE COMPANY:
1993-“To become the market leader in the country within 5 years”

1997-“To become one of the top three in the World in the field of oil seals”
2007-“To become the preferred suppliers to all our customers”
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2008-“To produce zero defect products”
MISSION OF THE COMPANY:
To produce high quality products, produce them at competitive prices, combined with on
time Delivery, strictly adopting environmental process.”
MILESTONES OF THE COMPANY:

• 1985 – Hi – Tech ancillary was registered.
• 1986 – First unit in Thanakkankulam was started.
• 1987 – Technical collaboration with Arai Seisakusho Co Ltd, Japan.
• 1990 – Totally professionalized.
• 1991 – Second unit in Trichy was started.
• 1991 – Awarded best SSI unit in the District.
• 1992 – Awarded best SSI unit in the State.
• 1993 – Third Unit in K Pudur was started.
• 1994 – Joint Venture with Arai Seisakusho Co Ltd & Mitsubishi
Corporation, Japan.
• 1994 – Name Changed to Hi – Tech Arai Ltd.
• 1995 – Fourth Unit in K Pudur.
• 1996 – Sixth Unit in K Pudur.
• 1999 – Most modern factory at K Pudur named Hi – Gashikojo.
• 2000 – Initiation of Environment Management System certification
program & obtained the certification in July 2001 ISO: 4001.
• 2001 – Quality award from Lucas TVS Ltd.
• 2002 – Award from Keihin Lie Ltd Pune for cost optimization.
• 2003 – Awarded Best SSI unit in the State Level.
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• 2003 – The company was accredited ISO – 9001 – 2000 certification.
• 2005 – CII & APAC awarded “Best Industry practicing the HIV/Aids
Prevention” for its Aids prevention and control Project.
• 2006 – First Export order from China.
• 2008 – Received ISO TS – 16949:2002.
LOCATIONS:
HEAD OFFICE,
 V.P. Rathinasamy Nadar Road,
North chokkikulam,
Madurai – 14
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THE UNITS:
 Thanakkankulam, Madurai – 6
Sidco Industrial Estate (Shed 14)

k. pudur, Madurai.
 Trichy – Chennai Highways,
Kuthor Village, Trichy.
 Survey No 2729 / 1, K. Pudur
Industrial Estate, Madurai.
 Maruthi Kojo, Industrial Estate,
Uthangudi
 Annamalai Complex, Trichy Road,
Uthangudi
ORGANIZATIONAL POLICIES:
FUNCTIONAL POLICIES:
• High quality product shall be produced by practicing total quality
management as a way of life.
• Competitive price shall be achieved through sustained efforts on

continuous improvement.
• On-time delivery shall be maintained through team efforts.
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ENVIRONMENTAL AND QUALITY POLICY:
They are committed to
• Strive for continual improvement of our quality performance by meeting
the changing requirements of our customers and our environmental
performance by prevention of pollution and minimization of wastes.
• Manufacture high quality products at competitive prices by adhering to

the system, processes and processes and procedures and continually
improving the same.
• Promote energy saving and conservation of resources.
• Comply with all applicable legislative, regulatory and other

requirements including those that apply to environmental aspects
governing our activities.
• Achieve the above by creating awareness among our employees through

proper communication, training and providing conducive work
environment.
STRATEGIES:
The Organization strives to excel by strictly adopting the following aspects. Growing and
achieving through people, by Training, Bench Marking, Employee involvement,
Employee Empowerment, Root Cause Corrective action, Team Work, Universal
Responsibility, Statistical Thinking, Organizational Culture building & Sustained
management methods.
Quality excellence is achieved by adopting the two major strategy.
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KAIZEN:
It’s a Japanese word meaning “change for the batter” or “improvement”;

the common English usage is “continual improvement”.
Kaizen refers to a workplace quality strategy and related to various quality
control systems. kaizen aims to eliminate waste. This is then followed by
standardization of this better way with others, through standardized work.
5S QUALITY PRINCIPLE:
5S is a method of organizing a workplace and keeping it organized. The

key targets of 5S are workplace morale and efficiency. The assertion of 5S
is by assigning everything a location, time is not wasted by looking for
things. 5S advocates believe that the benefit of this methodology come
from deciding what should be kept and how it should be kept and how it
should be stored. This decision making process usually come from a dialog
about standardization between employees of how work should be done.
The 5S are,
1.SEIRI- Sort and dispose unwanted items.

Follow red tag system.
Fixed point photograph.
Standard for deciding the required things.
2.SEITON- Organizing.
Proper lay out.
Tools shadow board cupboard/racks.
Proper arrangements.
Filing in cabinet.
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3.SEISO- Cleaning.
Set time for cleaning and checking standard.
Development cleaning and checking standard.
Follow standards.
4.SEIKETSU- Standardizing.
Develop check list and display.
Position mark.
Jewellery box system.
Visual control
5.SHITSUKE- Training and discipline
Train men at all level
Planned audit
Motivation by recognition
The above mentioned quality aspects are being followed throughout the
organization to uphold its quality. These are followed by its employees as
“their way of life”.
VARIOUS DEPARTMENTS AND THEIR FUNCTIONS
HUMAN RESOURCE DEPARTMENT:

The HR department is headed by Mr. N. Sankaravelayudham, DGM HR,
controls and monitors the processes involving the human resource related activities
throughout the organization. HR activities include:
• Recruitment and training for new employees.

• Allocation of employees for various departments and units.
• Process any employee related problem.
• Employee performance management.
• Culture Building.
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• Formulating Organizational Strategy.
• Library maintenance.
• Promote learning circles.
• Maintain audit and process employee related data like attendance, salary and
other specific functions related to HR management.
MAN POWER PLANNING:

There are two types of man power involved in the Company they are
• Company Staff
• Contract Labor
In both the cases the man power request is made by the concerned UNIT HEAD
and the HRD HEAD would sanction the same with the approval of the Managing
Director. For contract labor the interview is made by the unit persons but for the
company staff in addition to unit persons the head office persons will also conduct
interview. One important aspect is that the company would give preference to the
people who are approaching with the reference of the existing employees. The
company started its operations with manpower of around 75 and now it has
manpower of around 2000.
PERFORMANCE APPRAISAL & PROMOTION POLICY:

The performance appraisal and promotion policy of the company is as follows.
• Performance Appraisal form (PA Form) is sent to all employees once in a
year and in case of the Operators the PA form is sent to the concerned
supervisor.
• In the form the scaling of 1 through 5 is done in which 1&2 represent
Beginner Level, 3&4 represent Leaner Level and 5 represent Trainer Level.
• Filled in forms would be collected by the HRD.
• Based of the feedback the list of good workers is prepared and maintained.
• Based on Organization’s need promotion will be given on approval of MD.
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• In some cases the employees would be transferred form one unit to the
other.
• Poor performer will be given relevant training.
• Around 95% of the promotions are given to the existing employees of the
organization.
TRAINING MEASURES:
The first and the fore most of the Training measures are to identify the training
needs of the employees in systematic manner and provide relevant training. The same is
done in the following method.
• Training requirements are identified with performance appraisal form.
• Training need of the operators is identifies by the supervisors.
• List of required training is received by the HRD from various sources.
• Training Budget is made by HRD and is approved by the MD.
• Then Training Schedule is prepared.
• List of Internal & External faculties is maintained by the HRD and is
approved by the MD.
• All the employees of the company should attend at least 32 hours of
training program in a year.
• In case a particular employee is not able to attend the given schedule of
training an alternate schedule would be given.
• On completion of the training program Training Feed Back Questioner is
circulated to arrive at various decisions regarding the next training program.
• Training evaluation questioner is made to assess the impact on the
employees and it is filed in the employees’ personal file and is maintained
till their presence in the organization.
HRD MEASURES:
1. HRD Practices:
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• Team Building.
• Participative style of Management. (Transparency in decision making)
• Developing Leadership.
• Facilitating Team Work.
• Counseling for Addicts.
1. Culture Building:
• Transparency.
• Change in attitude toward the self & work to unfold the inner potentials.
• Committed work force.
• More emphasis on team work to get maximum outputs.
• Own the whole family.
1. Quality Circle:
Its main function is to facilitate Process Control, Mutual & Self
development of Employees, Improvement of their Workplace & Productivity by full
participation of all members.
• To contribute to the improvement and development of the organization.
• To respect humanity and to build worth while lives and cheerful work
areas.
• To give fullest recognition to human capabilities and to draw out each
individual’s finite potential.
The total quality management originally started in the year 1994 and now it has
become part and parcel of company’s culture. QC is conducted regularly once in a week
and they will conduct this meeting
For 1 hour after the working hours. Through QC the employees participate in the
company’s progress. They feel comfortable with timing and most of them are satisfied
with the level of management cooperation. The company gives import5ance to their
employees’ view and they feel that is necessary for the development of the company.
Most of them feel that they were able to solve their problems using QC techniques. Once
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the task is completed, a new circle is formed. Everyone has great interest towards QC.
The management motivate their better performance by providing certain awards. The low
performance of the employees is also corrected through QC. Most of them feel that they
have improved personally in problem solving . At present there are 120 quality circles
registered in the company. It is said that Rs. 219.30 lakhs has been saved through QC.
QC competitions conducted every month. Those who are selected in the competition are
sent to regional level, state level and national level competition. The employees have won
many prizes in all these competitions. We had an opportunity to view their presentation.
We were amazed by their pro blem solving techniques and their involvement in the QC.
The employees who have finished 8th and 10th standard were able to learn English and
computer skills and were boldly able to present before the crowd. The problem
identification techniques, problem analysis and problem solving methods were all done
beautifully by them.
In addition to this, there are family learning circles for family members. The management
has developed the participative culture as a way of life in the organization.
Steps in QC:
 Problem Identification.
 Observation.
 Analysis of problem.
 Action.
 Checking the results.
 Standardizing the Systems.
1. Welfare Measures:
• Twice Coffee or Tea is provided to their workers in each shift but in summer
additionally buttermilk is provided.
• Two uniforms per year for each confirmed workers.
• In case of family planning operation Rs 500 is provided.
• Two soaps to be provide for workers
• Accident compensation is provided.
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• Conducting sports & games program once in a year.
• Forming quality circles for their workers & providing counseling to their
family members.
• Sudden visit by the MD to the production units to know the workers
grievances.
SWOT Analysis:
• Strength:
 This company is the Indian Market leader in oil seal manufacturing.
 The company has a very good reputation for its products.
 The company has a very good internal customer satisfaction.
 Japanese technological collaboration is the biggest strength of the company.
• Weakness:
 In case of shell manufacturing around 50 to 60 percent of the input (steel)
wasted.
 In case of molding the company wastes around 30 to 40 percent of the
rubber compound which is an imported one.
• Opportunities:
 The company can become the World Market leader in the near future.
 The rubber waste can be converted into a motor belt with slight
modifications in the mould design.
• Threats:
 There is very less promotion opportunity for the operations people.
 The starting pay package offered is very low.
 Still the company has not entered in to new projects to expand by
diversification.
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ADMINISTRATIVE DEPARTMENT:
The administrative department is headed by Mr. S. Sankarakailasam, SGM

administration, is responsible for all administrative activities in all departments in any
general issues. Environmental safety activities are administered by this department as per
TNPCB norms. The air and water pollution control is administered by this department
based on AIR AND WATER ACT stated by TNPCB. Its main functions include.
• Handling of environmental legal issues.

• Interaction with Governmental Organizations.
• Magazine subscription.
• Grant of scholarships.
• Sponsorship for tournaments.
• Transport arrangements.
• Arranging the visit & convenience of foreign delegates.
• EB expenses Audit.
• Mail & Courier handling.
SECRETARIAL FUNCTIONS
Any organization with a paid up capital of 2 crores should have qualified

secretary. The organization’s secretary is Mr. R. R. Gnanasekaran. The secretary is
responsible for convening and conducting the Board of Directors meeting. This meeting
should be conducted once in every 3 months. One annual meeting should be held.
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Other major functions are:
• Compiling the annual report of the organization.

• Liaison between the Board of Directors and the Management.
• Liaison between the organization and the Shareholders.
• Maintaining the Statutory records.
• Handling all the legal activities of the organization based on the company’s
Act.
ACCOUNTS DEPARTMENT
The accounts department records, processes and maintains various financial

aspects and activities of the organization. This department is headed by DGM Finance,
Mr. N. Nirmal Nath. The major functions are as follows.
• Accounts Receivables.
• Accounts Payables.
• Purchase Accounting.
• Sales Accounting.
• General Accounting.
• Fixed Assets Register.
• Activity Base Costing.
• All general cash flow movements.
• Maintaining cash flow movements in both Purchase and Sales.
• Deciding mode of payments.
• Capitalization, Machinery accounts progress.
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• Auditing depreciation stated as per Company’s Act.
• Stock Valuation throughout the organization at each stage.
• Processing Salary & Labour contract accounts.
• Process wind power with the electricity board.
• Processing of Sales Tax & Excise Duty.
• Income Tax deductions for the payments to contractors and TDS for
employee’s salary.
• Filing of Quarterly TDS returns.
• Filing form 16A relating to consolidation of IT payments.
• Traditional accounting of activities, resource drivers, cost objects & activity
cost drivers by adapting activity based costing.
SYSTEM OF ACCOUNTING & FINANCIAL HIGHLIGHTS:

The company follows double entry system of accounting on accrual basis. They
mainly do Purchase Accounting, Sales Accounting, Fixed Asset Register & Cash flow
statement. The company follows usual accounting standard except for the depreciation
(50% or 100%) and special note is made in the annual report.
PURCHASE DEPARTMENT
The purchase unit is a centralized unit responsible for the purchase of all materials
required for production. The purchase can be classified into 4 categories based on nature
of purchase.
• Indigenous - Purchase of locally made material
• Imports - Import of required material
• Engineering Purchase - Purchase of machinery
• Packing Material Purchase - Purchase of material required for
packing.
RAW MATERIAL PURCHASE:
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The company is very keen that all the raw material should be purchased from
approved suppliers. The detailed steps involved in Raw Material Purchase are as
follows
• Based on the Sales forecast of the current financial year the quantity of
sales is arrived and it is converted into compound and compound is
converted into raw material thus the raw material requirement for the year
is arrived.
• Raw material requirement will be compared with the existing stock position
at Stores, Compounding & Respective Production Units and also at bonded
ware houses at Chennai (Imported Items).
• Minimum ordering quantity and period is arrived by ABC analysis and
currently they have the following purchase schedule.
Type of Purchase\Class A B C
Imports 1.5 M 4M 6M
Indigenous 10 D 1M 3M
A – Goods having around 80% in terms of value.

B – Goods having around 15% in terms of value.
C – Goods having around 05% in terms of value
D – Days.
M – Months.
• After considering the stock & the actual requirement for the month, enquiry
for required materials will be sent to suppliers.
• Quotations received from the suppliers will be compared in respect of the
price charged, Lead time, quality & the credit period offered.
• Sample lots are ordered & on approval from the Quality Assurance
Department the source is finalized.
• After finalizing the source confirmed Bulk purchase order will be issued to
the supplier with the indication of delivery schedules.
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• Regular follow up for getting the material will be made based on the
emergencies.
• Materials required for development purpose (Small Quantity) will be
procured based on the indents by the Technical Center.
OTHER MAJOR FUNCTIONS:
• Obtaining purchase indent from every unit.

• Scheduling purchase.
• Selection of Suppliers base on quality & quantity Marketing.
• Cost estimation & Negotiation.
• Allotment of scheduled order to supplier.
• Decision of Mode of Transport.
• Receiving & Dispersing goods to required units.
• Vendor development activities.
• Cost saving at sources.
EDP/ ERP DEPARTMENT
The Electronic Data Processing (EDP) department handles all activities regarding
Hardware and software throughout the organization. The Enterprise Resource Planning
(ERP) unit is responsible for coordinating various departments and plants like
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Purchasing, Discrete Manufacturing, Inventory, Finance & Order Management and the
technical highlights are as follows.
• Database management system used is Oracle 11.5.9.

• The mail server used is IBM lotus notes.
• OS used is Linux.
• Communication is done by dedicated lines provided by BSNL.
OTHER MAIN FUNCTIONS OF ERP:
• To provide Hardware & Software services through out the organization.

• To provide support to financial functions.
• Communicates between various units.
• To provide support for production related data.
• Resource planning & scheduling activities.
DEVELOPMENT CENTER
The DC is the mot important unit in the organization under the direct
administration of the Chairman.
• To monitor all progress & process in all the units of the organization
• To act as a window to customer.
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• Development of new products.
• Customer supportive marketing
• Solving customer related queries.
• To monitor purchase, manufacturing, sales & dispatch activities.
• To maintain the quality state of the organization DC is divided into four main
sections. They are
1) ARAI COMMUNICATION:
This section is solely responsible for communication activities with Arai

Seisakusho Ltd. The communication regarding Design, Engineering &
Technology of the moulds and moulding processes are done by this department.
2) DRAWING SECTION:
This section is solely responsible for drafting various design regarding the
product mould and maintaining the same.
• OE Drawing.
• Arai Drawing.
• Internal Production Drawing.
• Shell Drawing.
• Profile Drawing.
• Customer Reference Drawing.
• Spring Drawing.
• A3 Drawing.
It is also responsible for recording engineering change over activities.
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1) MATERIAL SECTION:
This section handles all the material related aspects related to the
manufacturing department. The term material means the Compound (Rubber) used for
manufacturing the end product. Its main functions are as follows.
• Deciding the compound for manufacturing.
• Analysis of compound used for manufacturing.
• Analysis of sample products.
• Inspection of quality at all stages.
• Auditing test reports of compound used for producing end products.
1) MARKETING SECTION:
This section headed by DGM marketing & manager customer support

controls all the marketing activities of the organization. This section handles all
the customer oriented activities too. The functions of this Department can be
described as follows:
• Receiving enquiry from customer end.
• Analysis of enquiry and related data.
• Feasibility Study.
• Quotation preparation.
• Receiving purchase order from customer end.
• Ordering mould.
• Sample submission to customer with related documents.
• Receiving customer end report.
• Pilot lot production.
• Initiate mass production based on customer report.
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SALES DEPARTMENT
The Sales Department is classified into two based on the nature of customer they
handle. They are Original Equipment (OE) Sale & Replacement Marketing (RM) Sales.
1) OE SALES:
The major part of the turn over (around 90%) is through OE
market. The company gets into a legal binding with OE customers (new product)
which states that the parts supplied to OE should not be released in the replace
market for the next 2-3 years, etc. and the major customers are.
• Hero Honda
• Maruthi Udyog Ltd.
• Bajaj Group
• TVS Motor
• Endurance.
1) RM SALES:
The Replacement Marketing Sales is done to the retail end
customers and is headed by Mr. R. Muthuraman, manager, RM sales, this is
done through authorized regional distributors. This department runs the business
in complete cash and carry method. The packing & dispatch activities of the RM
sale is done through a depot.
Other major customers are:
 Piagio (Italy)
 Indore (France)
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 Ashok Leyland Limited
 Birla Yamaha(Japan, India)
 Automotives Axles Ltd
 Escort Ltd.
 Gabriel India Ltd.
 TVS Suzuki.
QUALITY ASSURANCE DEPARTMENT
The QA Department is responsible for validation, problem solving & maintaining

the quality aspects of the products and processed. This department is controlled by SGM
Technical and SM quality assurance. Major functions are.
• Inspection of Moulds, raw materials and finished goods.
• Technical specification validation.
• Statistical process control.
• Issuing & auditing of various parameters.
Key result area:

The company’s key result area is oil Seal production for Automotive Industry and
it is evident from being an Indian market leader and third in the Globe.
Factors for Success:

The Key factors for the success of this organization are
• The high quality of the products.
• The competitive price for the products.
• Consistent efforts towards making on time delivery
• Japanese Technology through joint venture.
• And the internal customer satisfaction.
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2. STATEMENT OF OBJECTIVE
2.1 PRIMARYOBJECTIVE:
• To know the various activities of the Quality Circle.

• To Find out the effectiveness of the Quality Circle in Hi-tech Arai Limited.
• To study the involvement of employees in the Quality circle.
2.2 SECONDARY OBJECTIVE:
• To understand awareness on Quality circle among the employees.

• To know the attitude of employees towards Quality circle.
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• To identify the motivating factors which influence the employees to join as an
active member in Quality circle.
• To suggest measures to improve the attitude of employees towards Quality circle.
2.3 HYPOTHESIS
Hypothesis means a mere assumption or some assumption to be proved or

disproved a hypothesis is a preposition which the researcher wants to verify.
In this research study, following hypothesis testing is done:
1. Null Hypothesis H0
 There is no significant difference between the two selected variables.
2. Alternative Hypothesis H1
 There is significant difference between the two selected variables.
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3. REVIEW OF LITERATURE:
Review of literature is an important aspect for the study. It helps the researcher to carry
out the research project successfully. It helps the researcher to get a clean knowledge
about the field. Review of literature facilities the researcher uncovering of certain areas
unattained for visualizing the present work and correlates various findings. For this
purpose a certain number of researches finding literature have been reviewed and
established. The present study describes the employee’s attitudes and their development
in Quality Circle in Hi tech aria limited, Madurai, and should also expresses the
effectiveness of Quality Circle in the study organization.
In terms of employee attitudes, there is also a small, but growing body of research on the
influences of culture or country on employee attitudes and job satisfaction. The continued
globalization of organizations poses new challenges for HR practitioners, and the
available research on cross-cultural organizational and human resources issues can help
them better understand and guide practice (Erez, 1994; House, 1995; Triandis, 1994).
32
The most cited cross-cultural work on employee attitudes is that of Hofstede (1980,
1985). He conducted research on employee attitude data in 67 countries and found that
the data grouped into four major dimensions and that countries systematically varied
along these dimensions. The four cross-cultural dimensions are:
(1) individualism-collectivism;(2) uncertainty avoidance versus risk taking; (3) power
distance, or the extent to which power is unequally distributed; and (4)
masculinity/femininity, more recently called achievement orientation.
Research studies across many years, organizations, and types of jobs show that when
employees are asked to evaluate different facets of their job such as supervision, pay,
promotion opportunities, coworkers, and so forth, the nature of the work itself generally
emerges as the most important job facet (Judge & Church, 2000; Jurgensen, 1978).
Based on the research shows that employee attitudes predicts withdrawal behaviors like
turnover and absenteeism, researchers have been able to statistically measure the
financial impact on organizations (Cascio, 1986; Mirvis & Lawler,1977).
The two most extensively validated employee attitude survey measures are the Job
Descriptive Index (JDI; Smith, Kendall, & Hulin, 1969) and the Minnesota Satisfaction
Questionnaire (MSQ; Weiss, Dawis, England, & Lofquist, 1967). The JDI assesses
employee attitude with five different job areas: pay, promotion, coworkers, supervision,
and the work itself. The JDI is reliable and has an impressive array of validation
evidence. The MSQ has the advantage of versatility—long and short forms are available,
as well as faceted and overall measures.
Another measure used in job satisfaction research (Judge, Erez, Bono, & Thoresen, in
press) is an updated and reliable five-item version of an earlier scale by Brayfield and
Rothe (1951). All of these measures have led to greater scientific understanding of
employee attitudes. Additional issues with measuring employee attitudes that have been
researched and provide potentially useful knowledge for practitioners. First, measures of
33
job satisfaction can be faceted whereby they measure various dimensions of the job—
while others are global—or measure a single, overall feeling toward the job.
Employee attitude is necessary in order to understand the results and, in turn, take
appropriate actions to improve employee attitudes and job satisfaction. Research on
employee attitude measurement and statistical analyses is a key contribution of the field
of psychology (Edwards, 2001; Macey, 1996). Highlights of the research on survey
analyses and the most important issues for HR practitioners to consider are
1.The Use of Norms, 2.Comparisons and Numerical Accuracy, 3.Linking Employee
Attitudes to Business Measures.
(Schneider & Bowen, 1985). Other researchers (Wiley, 1996) have developed linkage
models that identify the organizational practices—as rated by employee attitude surveys
— that relate to high levels of organizational performance.
(Edwards & Fisher, 2004; Kraut, 1996). One likely future direction of employee
attitude research will be to better understand the interplay between the person and the
situation and the various internal and external factors that influence employee
attitudes.The field of industrial/organizational psychology has a long, rich, and, at times,
controversial history related to the study and understanding of employee attitudes . Some
of this research is very specific and aimed primarily at other researchers, while other
publications provide practical guidance on understanding, measuring, and improving
employee attitudes.In particular, a better understanding of the role of emotion, as well as
broader environmental impacts, is needed and has been largely overlooked in past
research. In addition, ongoing research will provide more in-depth understanding of the
effects of employee attitudes and job satisfaction on organizational measures, such as
customer satisfaction and financial measures. Greater insights on the relationship
between employee attitudes and business performance will assist HR professionals as
they strive to enhance the essential people side of the business in a highly competitive
global arena.
34
(Robert E. Stevens, Robert L. Moore. 1981). Quality Circles are an organizational
development process which deals with deficiencies and problems that plague modern
organizations by combining behavioral science concepts with statistical quality control
techniques at all levels of the organization Quality Circles are based on a people-building
philosophy which breeds trust, respect, and satisfaction between management and
workers. Quality Circles can be applied to any organization, especially the overmanaged
public sector. To succeed, management must not be defeated by its own assumptions.
INTODUCTION ABOUT QUALITY CIRCLE
Quality circle is a management approach for an organization, centered on quality,

based on the participation of all its members and aiming at long-term success through
customer satisfaction, and benefits to all members of the organization and to society.
It actively has human capital embedded and not only stimulates commitment,
integrity, work-life balance, passion, enjoyment at work and employee attitudes, but also
stimulates individual and team learning in order to develop a motivated workforce and
sustainable performance improvement and quality enhancement for the organization.
People are the greatest assets of an organization, because, through people all other
resources are converted into utilities. However, management of ‘People Resources’ has
always been a vexed problem ever since the beginning of organised human activities.
Quality Circle is one of the employee participation methods. It implies the development
of skills, capabilities, confidence and creativity of the people through cumulative process
of education, training, work experience and participation. It also implies the creation of
facilitative conditions and environment of work, which creates and sustains their
motivation and commitment towards work excellence. Quality Circles have emerged as a
35
mechanism to develop and utilize the tremendous potential of people for improvement in
product quality and productivity.
GENESIS OF QUALITY CIRCLES:

After the Second World War Japanese economy was in the doldrums. Seeing this
disastrous effect of war, Americans decided to help Japan in improving the quality
standards of their products. General Douglas Mac Arthur who, at that time, was the
commander of the occupational forces in Japan took up the task of imparting quality
awareness among Japanese to help them improve their products and the reliability of
manufacturing systems including men, machine and materials. Thus, by 1975, they were
topping the world in quality and productivity. This amazing and unique achievement in
modern history became an eye – opener to the world. Industrialists and politicians from
all over the world started visiting Japan to know how they have achieved such magical
results in such a short span. The answer to this was painstaking and persevering efforts of
the Japanese leaders and workers and the development and growth of the philosophy of
small working groups. This resulted in the Quality Circle concept being accepted all over
the world as a very effective technique to improve the total quality of work life.
DEFINITION:
Quality Circle is a small group of 6 to 12 employees doing similar work who
voluntarily meet together on a regular basis to identify improvements in their respective
work areas using proven techniques for analyzing and solving work related problems
coming in the way of achieving and sustaining excellence leading to mutual upliftment of
employees as well as the organization. It is “a way of capturing the creative and
innovative power that lies within the work force”.
PHILOSOPHY:
Quality Circle is a people – building philosophy, providing self-motivation and
happiness in improving environment without any compulsion or monetary benefits. It
represents a philosophy of managing people specially those at the grass root level as well
36
as a clearly defined mechanism and methodology for translating this philosophy into
practice and a required structure to make it a way of life. It is bound to succeed where
people are respected and are involved in decisions, concerning their work life, and in
environments where peoples’ capabilities are looked upon as assets to solve work-area
problems. The Quality Circle philosophy calls for a progressive attitude on the part of the
management and their willingness to make adjustments, if necessary, in their style and
culture. If workers are prepared to contribute their ideas, the management must be willing
to create a congenial environment to encourage them to do so.
CONCEPT:
The concept of Quality Circle is primarily based upon recognition of the value of
the worker as a human being, as someone who willingly activities on his job, his wisdom,
intelligence, experience, attitude and feelings. It is based upon the human resource
management considered as one of the key factors in the improvement of product quality
& productivity. Quality Circle concept has three major attributes:
1 Quality Circle is a form of participation management.
2 Quality Circle is a human resource development technique.
3 Quality Circle is a problem solving technique.
OBJECTIVE:
The objectives of Quality Circles are multi-faced.
a) Change in Attitude.
From “I don’t care” to “I do care”
Continuous improvement in quality of work life through organization of work.
b) Self Development
Bring out ‘Hidden Potential’ of people
People get to learn additional skills
c) Development of Team Spirit

Individual Vs Team – “I could not do but we did it”
Eliminate inter departmental conflicts.
37
d) Improved Organizational Culture
Positive working environment.
Total involvement of people at all levels.
Higher motivational level.
Participate Management process
LAUNCHING QUALITY CIRCLES:

The major prerequisite for initiating Quality Circles in any organization is the
total understanding of, as well as complete confidence and faith in the participative
philosophy, on the part of the top and senior management. In the absence of a
commitment from the Chief Executive to support the Quality Circle movement totally, it
would be inadvisable to seriously attempt the starting of Quality Circles.
The launching of Quality Circles involves the following steps: Expose middle
level executives to the concept.
 Explain the concept to the employees and invite them to volunteer as members of
Quality Circles.
 Nominate senior officers as facilitators.
 Form a steering committee.
 Arrange training of co-ordinators, facilitators in basics of Quality Circle approach,
implementation, techniques and operation. Later facilitator may provide training to
Circle leaders and Circle members.
 A meeting should be fixed preferably one hour a week for the Quality Circle to
meet.
 Formally inaugurate the Quality Circle.
 Arrange the necessary facilities for the Quality Circle meeting and its operation.
TRAINING:
Appropriate training for different sections of employees needs to be imparted.
Without a proper understanding of the real concept of Quality Circles, both the workers
38
and management might look at this philosophy with suspicion. Each group should know
beforehand the commitments and implications involved as well as the benefit that can be
obtained from Quality Circles. Such training comprises of:
* Brief orientation programme for top management.

* Programme for middle level executives.
* Training of facilitators.
* Training for Circle leaders and members.
The operation of quality circles involves a set of sequential steps as under:
1 Problem identification: Identify a number of problems.

2 Problem selection : 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. Implementation of solution : The management evaluates the recommended solution.
Then it is tested and if successful, implemented on a full scale
39
BASIC PROBLEM SOLVING TECHNIQUES:
The following techniques are most commonly used to analyse and solve work
related problems
1 Brain storming
2 Pareto Diagrams
3 Cause & Effect Analysis
4 Data Collection
5 Data Analysis
The tools used for data analysis are :

1 Tables
2 Bar Charts
3 Histograms
4 Circle graphs
5 Line graphs
6 Scatter grams
7 Control Charts
The Quality Circles also are expected to develop internal leadership, reinforce
worker morale and motivation, and encourage a strong sense of teamwork in an
organization
A variety of benefits have been attributed to Quality Circles, including higher
quality, improved productivity, greater upward flow of information, broader improved
worker attitudes, job enrichment, and greater teamwork
Problem quality circles often suffer from unrealistic expectations for fast results,
lock of management commitment and support, resistance by middle management,
resentment by non participants, inadequate training, lack of clear objectives and failure to
get solutions implemented
BENEFITS AND LIMITATIONS OF QUALITY CIRCLES:
40
It took more than two decades for the quality control concept to get acceptance in
India, after its introduction in Japan. This may be due to the differences in the industrial
context in the two countries. Japan needed it for its survival in a competitive market.
India had a reasonably protected, sellers market, with consequent lethargy towards efforts
to improve quality and productivity. However, with the policy of organizations of
economy and organizations of infrastructure development, contexts changed. The concept
now needs to be looked upon as a necessity
4. RESEARCH METHODOLOGY
Research means search for knowledge . Research comprises of defining and

redefining, problems, formulating hypothesis or suggested solution collecting organizing
& evaluating data; making deductions and reaching conclusions; and at last carefully
testing the conclusion to determine whether they fit the formulating hypothesis.
The following are said to be main objectives of a research:

 To explore a phenomenon or achieve new insights into it.
 To discover the characteristics of a particular individual situation or a group.
 To test a hypothesis of a causal relationship between variables.
41
4.1 RESEARCH DESIGN
A research design is the arrangement of condition for collection and analysis of

data in a manner that aims to combine relevance to the research purpose with economy in
procedure.
There are three types of research design namely:
 Exploratory
 Descriptive
 Experimentation
This research deals with descriptive studies.
42
Descriptive Research Design
Descriptive research design includes survey and fact-finding enquiries of
different kinds. The major purpose descriptive research is description of the state of
affairs, as it exists at present. The main characteristic of ex-post facto method is that the
researcher has no control over the variables, he can only report what has happened or
what is happening.
✔ Understand the characteristics of a group in a given situation

✔ Think systematically about aspects in a given situation
✔ Offer ideas for further probe and research and/or
✔ Helps to make certain simple decisions.
4.2 SAMPLE SIZE:
A sample of 95 employees was selected for the study. The researcher used census survey
where in the population elements are selected based on the particular units strength.
4.3 SAMPLING METHOD:

There are two types of sampling methods,
➢ Probability sampling method.

➢ Non-probability sampling method.
In this study probability sampling method is used.
43
Probability sampling method:
Probability sampling means each and every items of the population has an equal
or known chance of being selected as sample. There are around eight methods in
probability sampling.
The method of sampling used in this research is simple random sampling:
SIMPLE RANDOM SAMPLING:

It is the unrestricted probability sampling design, in which every element in the
population has a known and equal chance of being selected as a sample.
In this method all the elements in the population are considered and each elements
has an equal chance of being chosen as the subject.
4.4 QUESTIONNAIRE DESIGN:
Questionnaire is the most common instrument in collecting primary data. A structured

technique for data collection consist of series of questions, written or verbal to which the
respondent reply. To have detail and precise information many close ended questions and
less open ended question have been used. Keeping the above said facts in mind a
structured and well define directed questionnaire has been used. All the essentials of a
good questionnaire were kept in mind and followed.
OPEN ENDED QUESTIONS:

Open ended questions are good as first questions. They introduce the subjects and obtain
the general reactions that are relatively uninfluenced by the question itself. If the question
is left wide open, almost every respondent will be able to give some answer and will thus
44
begin to warm up to the questioning process. In simple words here acceptable response
are not provided to the respondents that they may answer in own words.
CLOSE ENDED QUESTIONS:

It is also called fixed alternative question acceptable responses are provided to the
respondents.
MULTIPLE CHOICES:
A multiple choice question refers to one, which provides several sets of alternatives to
answer multiple choice questions can be used.
4.5 PRETESTING OF METHOD:
The pre-testing was conducted by the research to remove questions which are
vague and ambiguity in nature.
4.6 PERIOD OF THE STUDY:
The researcher takes a period of 4 months to complete the project work, from
December, 2009 to march, 2010.
4.7 METHOD OF DATA COLLECTION:
45
PRIMARY DATA:
Primary data was collected through the method of questionnaires. A

questionnaire was prepared to Market Research on customer preference of TNPL copier
paper. The method adopted to collect the details from the respondent by asking them to
fill up the questionnaire.
SECONDARY DATA:
In this method, also known as desk research the secondary data was collected
from the company’s, website, journals and the standing order.
4.8 SCOPE OF THE STUDY
 This study will create the awareness about Quality Circle with employees.
 This study may motivate the employees toward Quality Circle.
 The study is focused on the functioning of Quality Circle is helps the organization
to know about the effectiveness of Quality circle and this will help the
organization in future to form more Quality Circle and get benefited from them.
46
4.9 LIMITATIONS OF THE STUDY
The limitation of the study can be listed down as follows
AREA/ GEOGRAPHICAL
The study also has a geographical limitation. Hi-tech Arai Limited has several units. But
this study was confined to Shed-1, AS-1, Shed-44, and Head Office alone. Not able to
take the survey in other Units of HI-TECH ARAI LTD.
PROCEDURAL
All the data collected are generally limited by the methods adapted. In the current study,
one of the methods of collections being the questionnaire limits the data to any extent of
data generation available through that method.
47
4.10 STATISTICAL TOOLS USED
The Statistical Package used for this study is SPSS 16.0 and MS-EXAL .
The data collected are classified, analysis and tabulated. The statistical tool are applied
for the analysis of the data. The tool used are:
➢ Reliability statistics
➢ Percentage analysis
➢ Chi-square test
➢ Weighted average
➢ ANOVA
PERCENTAGE ANALYSIS:
Percentage refers to a special kind of ratio. Percentage is used in making

comparisons between two or are series of data. Percentage is used to describe
relationships.
% of Respondents
No of Respondents = --------------------------- × 100
Total Respondents
48
CHI-SQUARE ANALYSIS (χ 2)
It used to test the significance of discrepancy between experimental values and

the critical values obtained from a hypothesis. This test is used for testing hypothesis
when distribution of the population is non-known and when nominal data is to be
analyzed.
Ʃ(O-E)2
χ2 = ------------ O = Observed frequency
E E = Expected Frequency
ANOVA (Analysis of variance)
The Analysis of variance is a powerful statistical tool for tests of significance. The term
“analysis of variance” was introduced by prof. R.A Fisher in 1920’s to deal with
problem in the analysis of agronomical data. Variation is inherent in nature. The total
variation in any set of numerical data is due to a number of causes which may be
classified as (i) assignable causes, and (ii) chance causes. The variation due to assignable
causes can be detected and measured whereas the variation due to chance is beyond the
control of human hand and cannot be traced separately. Analysis of variance (ANOVA)
is the separation of variance ascribable to one group of causes from the variance
ascribable to other group”. It is nothing but an arithmetical procedure used to express the
total variation of data as the sum of its non-negative components.
49
1.DATA ANALYSIS AND INTERPRETATION
5.1 Reliability statistics
Reliability Statistics
Cronbach's Alpha No of Items

.893 12
INFERENCE
The desired value for reliability test is 0.7 and above. The actual value arrived is .893
So the variables are accepted and the questionnaire is reliable.
50
Table-1
5.2 PERCENTAGE ANALYSIS
AGE WISE CLASSIFICATION OF RESPONDENTS
S.No Age Group No of Respondents Percentage of

Respondents
1 20-25 10 10.5
2 26-30 15 15.8
3 31-35 24 25.3
4 36-40 18 18.9
5 Above 40 28 29.5
6 Total 95 100.00
INFERENCE
From the above table it is found that 29.5% of the respondents belong to the age group of
above 40 years, 25.3% of the respondents belong to the age group of 31 to 35 years.
18.9% of the respondents belong to the age group of 36 to 40 years. 15.8% of the
respondents belong to the age group of 26 to 30 years & 10.5% of the respondents belong
51
to the age group of 20 to 25 years. It can be inferred that the majority of the employees in
HI-TECH ARAI LIMITED belong to the age group of above 40.
Chart-1
AGE WISE CLASSIFICATION OF RESPONDENTS
Table-2
GENDER WISE CLASSIFICATION OF THE RESPONDENTS
S.No Gender No of Respondents Percentage of

Respondents
1 Male 81 85.3
2 Female 14 14.7
52
3 Total 95 100
INFERENCE
From the above table it is found that 85.3% of the respondents are Male & 14.7% of the
respondents are Female. It can be inferred that the majority of the employees in HI-
TECH ARAI LIMITED are male.
Chart-2
GENDER WISE CLASSIFICATION OF THE RESPONDENTS
53
Table-3
RESPONDENT’S EDUCATIONAL QUALIFICATION
S.No Educational No of Respondents Percentage of

Qualification Respondents
1 10th 45 47.4
2 12 th
13 13.7
3 Diploma/ ITI 16
16.8
4 UG 10 10.5
5 PG 7 7.4
6 B.E 3
3.1
7 Others 1 1.1
8 Total 95 100
INFERENCE
From the above table it is inferred that 47.4% of the respondents have 10th as their
educational qualification. 13.7% of respondents have 12th as their educational
qualification. 16.8% of the respondents have diploma/ITI qualification. 10.5% of the
respondents have UG qualification. 7.4% of the respondents have PG qualification. 3.1%
54
of the respondents have B.E qualification & 1.1% of the respondents have other
qualification.
Chart-3
RESPONDENT’S EDUCATIONAL QUALIFICATION
Table-4
CLASSIFICATION OF THE RESPONDENTS DESIGNATION
S.No Employees’ No of Respondents Percentage of

Designation Respondents
1 Supervisor 5 5.3
2 Labours 59 62.1
3 Technical Assistant 6 6.3
4 Operators 8 8.4
5 Others 17 17.9
55
Total 95 100
Interpretation
From the above table it is inferred that 5.3% of the respondents are supervisors, 62.1% of
the respondents are labours, 6.3 % of the respondents are technical assistant, 8.4% of the
respondents are operators & 17.9% of the respondents have other designation.
Chart-4
CLASSIFICATION OF THE RESPONDENTS DESIGNATION
56
Table-5
CLASSIFICATION OF THE RESPONDENTS EXPERIENCE
S.No Year of No of Respondents Percentage of

Experience Respondents
1 0 to 1 3 3.16
2 1 to 2 3 3.16
3 2 to 3 4 4.21
4 3 to 4 3 3.16
5 Above 4 82 86.31
Total 95 100
INFERENCE
From the above table it is inferred that 86.31% of the respondents have the experience of
above 4 years, 3.16% of the respondents have the experience between 3 to 4 years, 4.21
% of the respondents have the experience between 2 to 3 years, 3.16% of the respondents
have the experience between 1 to 2 years & 3.16 % of the respondents have the
experience of below 1 years.
57
Chart-5
CLASSIFICATION OF THE RESPONDENTS EXPERIENCE
Table-6
RESPONDENTS AWARENESS ABOUT QUALITY CIRCLE
Percentage of Percentage
S.No Respondents Awareness about Quality Respondents of
Circle Accepted Respondents
rejected
1 All the QC projects are implemented 87.4 12.6
2 QC Projects reduce the cost of functioning 95.8 4.2
3 QC activities consume the production time 76.9 23.1
58
INFERENCE
From the above table it is inferred that 87.4% of the respondents accept that all the QC
projects are implemented, 12.6% of the respondents reject that all the QC projects are not
implemented. 95.8% of the respondents accept that the QC projects are reducing the cost
of functioning, 4.2% of the respondents reject that the QC projects are never reducing the
cost of functioning & 76.9% of the respondents accept that QC activities consume the
production time, 23.1% of the respondents reject that QC activities never consume the
production time.
Chart-6
RESPONDENTS AWARENESS ABOUT QUALITY CIRCLE
59
Table-7
RESPONDENT’S KNOWLEDGE ENHANCE BY PARTICIPATING

IN QUALITY CIRCLE
Knowledge Frequency Percent

Strongly agree 55 57.9
Agree 35 36.8
No opinion 5 5.3
Total 95 100.0
INFERENCE
From the above it is inferred 57.9% of respondents strongly agree that knowledge
enhances by participate in Quality Circle, 36.8% of respondents agree that knowledge
enhances by participate in Quality Circle & 5.3% of respondents have no opinion.
Chart-7
60
RESPONDENT’S KNOWLEDGE ENHANCE BY PARTICIPATING IN
QUALITY CIRCLE
Table-8
RESPONDENT’S SKILL ENHANCE BY PARTICIPATING IN

QUALITY CIRCLE
Skill Frequency Percent

Agree 43 45.3
No opinion 2 2.1
Total 95 100.0
INFERENCE
From the above it is inferred that 52.6% of respondents strongly agree that skill
enhances by participate in Quality Circle, 45.3% of respondents agree that skill enhances
by participate in Quality Circle & 2.1% of respondents have no opinion.
61
Chart-8
RESPONDENT’S SKILL ENHANCE BY PARTICIPATING IN

QUALITY CIRCLE
Table-9
62
RESPONDENT’S CREATIVE THINKING SKILL ENHANCE BY
PARTICIPATING IN QUALITY CIRCLE
Creative thinking skill Frequency Percent

Agree 40 42.1
No opinion 1 1.1
Total 95 100.0
INFERENCE
From the above it is inferred that 56.8% of respondents strongly agree that creative
thinking skill enhances by participate in Quality Circle, 42.1% of respondents agree that
creative thinking skill enhances by participate in Quality Circle & 1.1% of respondents
have no opinion.
Chart-9
63
RESPONDENT’S CREATIVE THINKING SKILL ENHANCE BY
Table-10
RESPONDENT’S INTERPERSONAL RELATIONSHIP ENHANCE

BY PARTICIPATING IN QUALITY CIRCLE
Interpersonal relationship Frequency Percent

Agree 57 60.0
No opinion 4 4.2
Disagree 1 1.1
Total 95 100.0
INFERENCE
From the above it is inferred that 34.7% of respondents strongly agree that interpersonal
relationship enhances by participate in Quality Circle, 60.0% of respondents agree that
64
interpersonal relationship enhances by participate in Quality Circle, 4.2% of respondents
have no opinion &1.1% of disagree that interpersonal relationship enhances by
participate in Quality Circle
Chart-10
RESPONDENT’S INTERPERSONAL RELATIONSHIP ENHANCE

BY PARTICIPATING IN QUALITY CIRCLE
Table-11
65
RESPONDENT’S DECISION MAKING ABILITY ENHANCE BY
Decision making ability Frequency Percent

Agree 54 56.8
No opinion 4 4.2
Disagree 1 1.1
Total 95 100.0
INFERENCE
From the above it is inferred that 37.9% of respondents strongly agree that decision
making ability enhances by participate in Quality Circle, 56.8% of respondents agree that
decision making ability enhances by participate in Quality Circle, 4.2% of respondents
have no opinion & 1.1% of disagree that decision making ability enhances by participate
in Quality Circle.
Chart-11
66
RESPONDENT’S DECISION MAKING ABILITY ENHANCE BY
Table-12
RESPONDENT’S COMMUNICATION ABILITY ENHANCE BY

Communication ability Frequency Percent

Agree 63 66.3
No opinion 4 4.2
Total 95 100.0
INFERENCE
From the above it is inferred that 29.5% of respondents strongly agree that
communication ability enhances by participate in Quality Circle, 66.3% of respondents
67
agree that communication ability enhances by participate in Quality Circle & 4.2% of
respondents have no opinion.
Chart-12
RESPONDENT’S COMMUNICATION ABILITY ENHANCE BY

68
Table-13
RESPONDENT’S PROBLEM SOLVING ABILITY ENHANCE BY

Problem solving ability Frequency Percent

Agree 42 44.2
No opinion 2 2.1
Total 95 100.0
INFERENCE
From the above it is inferred that 53.7% of respondents strongly agree that problem
solving ability enhances by participate in Quality Circle, 44.2% of respondents agree that
problem solving ability enhances by participate in Quality Circle & 2.1% of respondents
have no opinion.
69
Chart-13
RESPONDENT’S PROBLEM SOLVING ABILITY ENHANCE BY

Table-14
RESPONDENT’S LEADERSHIP SKILLS ENHANCE BY

Leadership skills Frequency Percent

Agree 51 53.7
No opinion 5 5.2
Total 95 100.0
INFERENCE
70
From the above it is inferred that 41.1% of respondents strongly agree that leadership
skill enhances by participate in Quality Circle, 53.7% of respondents agree that
leadership skill enhances by participate in Quality Circle & 5.2% of respondents have no
opinion.
Chart-14
RESPONDENT’S LEADERSHIP SKILLS ENHANCE BY

71
Table-15
RESPONDENT’S INTERSTED IN TEAM WORK ENHANCE BY

Interested in team work Frequency Percent

Agree 41 43.1
No opinion 1 1.1
Total 95 100.0
INFERENCE
From the above it is inferred that 55.8% of respondents strongly agree that interested in
team work enhances by participate in Quality Circle, 43.1% of respondents agree that
interested in team work enhances by participate in Quality Circle & 1.1% of respondents
have no opinion.
72
Chart-15
RESPONDENT’S INTERESTED IN TEAM WORK ENHANCE BY

Table -16
5.3 WEIGHTED AVERAGE
COLLEAGUES ENCOURAGEMENT INFLUENCES THE RESPONDENTS

TO JOIN IN QUALITY CIRCLES
SCALE (W) RESPONDENTS (X) TOTAL (WX)

1 1 1
2 0 0
3 2 6
4 48 192
5 44 220
Sample size X = 95
73
Total WX 419
=
Weighted Average (Total/Sample size) WX / X =
4.41
Approximately 4
INFERENCE
From the above table it is inferred that most of the respondents agree that the colleague’s
encouragement made them to join in quality circles.
Table -17
SUPERIOR’S MOTIVATION INFLUCENCE THE RESPONDENTS TO

JOIN IN QUALITY CIRCLES

1 0 0
2 20 40
3 8 24
4 48 192
5 19 95
Sample size X = 95
Total WX 351
=
3.7
Approximately 4
74
INFERENCE
From the above table it is inferred that most of the respondents agree that the superior’s
motivation made them to join in quality circles.
Table-18
SUBORDINATES INVOLVEMENT INFLUENCE THE RESPONDENTS


1 1 1
2 3 6
3 4 12
4 65 260
5 22 110
Sample size X = 95
Total WX 389
=
4.09
Approximately 4
INFERENCE
75
From the above table it is inferred that most of the respondents agree that the
subordinate’s involvement made them to join in quality circles.
Table-19
QC’S ACHIEVEMENTS INFLUENCE THE RESPONDENTS TO JOIN IN

QUALITY CIRCLES

1 0 0
2 1 2
3 3 9
4 41 164
5 50 250
Sample size X = 95
Total WX 425
=
4.5
Approximately 5
INFERENCE
From the above table it is inferred that most of the respondents strongly agree that QC’s
achievements made them to join in quality circles.
76
Table-20
MANAGEMENT’S ENCOURAGEMENT INFLUENCE THE

RESPONDENTS TO JOIN IN QUALITY CIRCLES

1 0 0
2 2 4
3 3 9
4 40 160
5 50 250
Sample size X = 95
Total WX 423
=
4.5
Approximately 5
INFERENCE
From the above table it is inferred that most of the respondents strongly agree that
management’s encouragement made them to join in quality circles.
77
Table-21
PARTICIPATING IN COMPETITION INFLUENCE THE RESPONDENTS


1 0 0
2 1 2
3 14 42
4 41 164
5 39 195
Sample size X = 95
Total WX 403
=
Weighted Average (Total/Sample size) WX / X
4.24
Approximately 4
INFERENCE
From the above table it is inferred that most of the respondents agree that participating in
various competition made them to join in quality circles.
Table-22
78
LEARNING NEW TECHNIQUES INFLUENCE THE RESPONDENTS TO
JOIN IN QUALITY CIRCLES

1 0 0
2 0 0
3 4 12
4 55 220
5 36 180
Sample size X = 95
Total WX 412
=
4.33
Approximately 4
INFERENCE
From the above table it is inferred that most of the respondents agree that learning new
techniques made them to join in quality circles.
Table-23
ATTENDING VARIOUS ORGANIZATIONAL PROGRAMS INFLUENCE

THE RESPONDENTS TO JOIN IN QUALITY CIRCLES
79
1 0 0
2 0 0
3 1 3
4 49 196
5 45 225
Sample size X = 95
Total WX 424
=
4.4
Approximately 4
INFERENCE
From the above table it is inferred that most of the respondents agree that attending
various organization programs made them to join in quality circles.
Table-24
REWARDS AND AWARDS INFLUENCE THE RESPONDENTS TO JOIN

IN QUALITY CIRCLES

1 2 2
80
2 4 8
3 9 27
4 41 164
5 41 205
Sample size X = 95
Total WX 406
=
4.27
Approximately 4
INFERENCE
From the above table it is inferred that most of the respondents agree that rewards and
awards made them to join in quality circles.
Table-25
POSITIVE CHANGE OF QC-MEMBERS INFLUENCE THE

RESPONDENTS TO JOIN IN QUALITY CIRCLES

1 0 0
2 4 8
3 17 51
4 51 204
5 23 115
81
Sample size X = 95
Total WX 378
=
3.97
Approximately 4
INFERENCE
From the above table it is inferred that most of the respondents agree that positive change
of QC-members made them to join in quality circles.
5.4 CHI-SQUARE ANALYSIS

To analyze the relationship between the age of the respondents and knowledge enhance
by participating in Quality Circle.
FORMULA:
SOLUTION:
 H0: There is no significant relationship

between the age of the respondents
and knowledge enhance by participating in Quality Circle.
 H1: There is significant relationship between the age of the respondents and
knowledge enhance by participating in Quality Circle.
82
OBSERVED FREQUENCY [O]
KNOWLEDGE
STRONGLY
AGREE AGREE NO OPENION Total
AGE 20-25 yrs 3 7 0 10
26-30 yrs 9 6 0 15
31-35 yrs 16 8 0 24
36-40 yrs 8 6 4 18
above 40 19 8 1 28
Total 55 35 5 95
Row total × Column total

EXPECTED FREQUENCY =
________________________
Grand total
83
EXPECTED FREQUENCY [E]
KNOWLEDGE
STRONGLY
AGREE AGREE NO OPENION Total
AGE 20-25 yrs 5.8 3.7 0.5 10
26-30 yrs 8.7 5.5 0.8 15
31-35 yrs 13.9 8.8 1.3 24
36-40 yrs 10.4 6.7 0.9 18
above 40 16.2 10.3 1.5 28
Total 55 35 5 95
OBSERVED EXPECTED [O-E] [O-E]2 [O-E]2

FREQUENCY FREQUECY ___________
[O] [E] E
12 14.5 -2.5 6.25 0.4

16 13.9 2.1 4.41 0.3
8 10.4 -2.4 5.76 0.5
19 16.2 2.8 7.84 0.5
7 3.7 3.3 10.89 2.9
6 5.5 0.5 0.25 0.04
8 8.8 -0.8 0.64 0.07
6 6.7 -0.7 0.49 0.07
13 15.3 -2.3 5.29 0.3
χ2 = [(O-E)2 / 5.08
E] 84
Calculated Value = 5.08
Degree of freedom = [r-1] [c-1] = [3-1] [5-1] = 8
Table value = 15.5
INFERENCE
The calculated value is less than the table value. Hence H1 is rejected, H0 is
accepted. There is no significant relationship between the age of the respondents and
Chart-16
THE RELATIONSHIP BETWEEN THE AGE OF THE

RESPONDENTS AND KNOWLEDGE ENHANCE BY
PARTICIPATING IN QUALITY CIRCLE.
85
CHI-SQUARE ANALYSIS
To analyze the relationship between the education of the respondents and knowledge
enhance by participating in Quality Circle.
FORMULA:
86
SOLUTION:
 H0: There is no significant relationship

between the education of the
respondents and knowledge enhance by participating in Quality Circle.
 H1: There is significant relationship between the education of the respondents and
OBSERVED FREQUENCY [O]
KNOWLEDGE
STRONGLY NO
AGREE AGREE OPENION Total
EDUCATIONA 10 th
26 15 4 45
L 12th 7 5 0 12
QUALIFICATI
Diploma 9 6 1 16
ON
UG 5 4 0 9
PG 5 3 0 8
B.E 2 1 0 3
OTHERS 1 1 0 2
Total 55 35 5 95
Row total × Column total

EXPECTED FREQUENCY =
________________________
Grand total
87
EXPECTED FREQUENCY [E]
KNOWLEDGE
STRONGLY NO
AGREE AGREE OPENION Total
EDUCATIONA 10th 26.1 16.5 2.4 45
L 12th 6.9 4.5 0.6 12
Diploma 9.3 5.9 0.8 16
QUALIFICATI
UG 5.2 3.3 0.5 9
ON
PG 4.6 3 0.4 8
B.E 1.7 1.1 0.2 3
OTHERS 1.2 0.7 0.1 2
Total 55 35 5 95
OBSERVED EXPECTED [O-E] [O-E]2 [O-E]2

FREQUENCY FREQUECY ___________
[O] [E] E
26 26.1 -0.1 0.01 0.0004

7 6.9 0.1 0.01 0.0014
9 9.3 -0.3 0.09 0.0096
5 5.2 -0.2 0.04 0.0076
8 7.5 0.5 0.25 0.0333
15 16.5 -1.5 2.25 0.1363
5 4.5 0.5 0.25 0.0555
6 5.9 0.1 0.01 0.0016
14 13.1 0.9 0.81 0.0618
χ2 = [(O-E)2 / 0.3075
E]
88
Calculated Value = 0.307
Degree of freedom = [r-1] [c-1] = [3-1] [7-1] = 12
Table value = 21.026
INFERENCE
The calculated value is less than the table value. Hence H1 is rejected, H0 is
accepted. There is no significant relationship between the education of the respondents
and knowledge enhance by participating in Quality Circle.
Chart-17
THE RELATIONSHIP BETWEEN THE EDUCATION OF

THE RESPONDENTS AND KNOWLEDGE ENHANCE BY
PARTICIPATING IN QUALITY CIRCLE.
89
5.5 ANALYSIS OF VARIANCE
(Two-Way ANOVA)
To analyze the relationship between the age of the respondents and management
encourage them to join in Quality Circle.
90
MANAGEMENT ENCOURAGEMENT
STRONGLY NO
AGREE AGREE OPENION DISAGREE
X1 X2 X3 X4 Total
AGE 20-25
yrs 3 6 0 1 10
Y1
26-30
yrs 8 6 1 0 15
Y2
31-35
yrs 11 13 0 0 24
Y3
36-40
yrs 10 7 0 1 18
Y4
above
40 17 9 2 0 28
Y5
Total 49 41 3 2 95
SOLUTION:
 H0: There is no significant relationship between the age of the respondents and
management encourages them to join in Quality Circle.
 H1: There is significant relationship between the age of the respondents and
management encourages them to join in Quality Circle.
X1 2 X2 2 X3 2 X4 2
91
9 36 0 1
64 36 1 0
121 169 0 0
100 49 0 1
289 81 4 0
583 371 5 2
Step 1: Number of observation, N = 20
Step 2: Total value of all observation, T= 95
Step 3: Correction factor ( T2/N ) = 451.25
Step 4: Total sum of squares TSS = X12+ X22+ X32+ X42 - (T2/N)
= 509.75
Step 5: Sum of squares – Column wise,
SSC = ( X1 )2+ ( X2 )2+( X3 )2+( X4 )2- (T2)

N N N N N
= 367.75
Step 6: Sum of squares – Row wise,
SSR = ( Y1 )2+ ( Y2 )2+( Y3 )2+( 2

Y4 +) ( Y5
2
) - (T2)
N N N N N N
= 51.00
SSE = TSS- SSC- SSR = 91.00
Step 7: ANOVA TABLE:
92
Source Sum of Degrees Mean sum of Variation Table
of squares of squares Ratio value at
variation freedom 5% level
Between SSC c-1=3 MSC=SSCc-1 Fc=MSCMSE Fc (3,12)

columns =16.17
=367.75 =122.58 =4.49
Between SSR r-1=4 MSR=SSCr-1 Fr=MSRMSE Fr (4,12)

Rows
=51 =12.75 =1.68 =3.26
Error SSE N-c-r+1 MSE=SSEN-c-r-1
=91 =12 =7.58
INFERENCE
The calculated value (Fr) is greater than the table (Fr). Hence H1 is rejected, H1 is
accepted. There is significant relationship between the age of the respondents and
management encourages them to join in Quality Circle
Chart-18
THE RELATIONSHIP BETWEEN THE AGE OF THE

RESPONDENTS AND MANAGEMENT ENCOURAGE
THEM TO JOIN IN QUALITY CIRCLE.
93
FINDINGS
94
• 29.5% of the respondents belong to the age group of above 40 years, 25.3% of
the respondents belong to the age group of 31 to 35 years. 18.9% of the
respondents belong to the age group of 36 to 40 years. 15.8% of the respondents
belong to the age group of 26 to 30 years & 10.5% of the respondents belong to
the age group of 20 to 25 years. It can be inferred that the majority of the
employees in HI-TECH ARAI LIMITED belong to the age group of above 40.
• 85.3% of the respondents are Male & 14.7% of the respondents are Female in
HI-TECH ARAI LIMITED. It can be inferred that the majority of the employees
in HI-TECH ARAI LIMITED are male.
• 47.4% of the respondents have 10th as their educational qualification. 13.7% of

respondents have 12th as their educational qualification. 16.8% of the respondents
have diploma/ITI qualification. 10.5% of the respondents have UG qualification.
7.4% of the respondents have PG qualification. 3.1% of the respondents have B.E
qualification & 1.1% of the respondents have other qualification.
• 5.3% of the respondents are supervisors, 62.1% of the respondents are labours,
6.3 % of the respondents are technical assistant, 8.4% of the respondents are
operators & 17.9% of the respondents have other designation.
• 86.31% of the respondents have the experience of above 4 years, 3.16% of the
respondents have the experience between 3 to 4 years, 4.21 % of the respondents
have the experience between 2 to 3 years, 3.16% of the respondents have the
experience between 1 to 2 years & 3.16 % of the respondents have the experience
of below 1 years.
• 87.4% of the respondents accept that all the QC projects are implemented, 12.6%
of the respondents reject that all the QC projects are not implemented. 95.8% of
the respondents accept that the QC projects are reducing the cost of functioning,
4.2% of the respondents reject that the QC projects are never reducing the cost of
95
functioning & 76.9% of the respondents accept that QC activities consume the
production time, 23.1% of the respondents reject that QC activities never consume
the production time.
• 57.9% of respondents strongly agree that knowledge enhances by participate in

Quality Circle, 36.8% of respondents agree that knowledge enhances by
participate in Quality Circle & 5.3% of respondents have no opinion.
• 52.6% of respondents strongly agree that skill enhances by participate in Quality

Circle, 45.3% of respondents agree that skill enhances by participate in Quality
Circle & 2.1% of respondents have no opinion.
• 56.8% of respondents strongly agree that creative thinking skill enhances by

participate in Quality Circle, 42.1% of respondents agree that creative thinking
skill enhances by participate in Quality Circle & 1.1% of respondents have no
opinion.
• 34.7% of respondents strongly agree that interpersonal relationship enhances by

participate in Quality Circle, 60.0% of respondents agree that interpersonal
relationship enhances by participate in Quality Circle, 4.2% of respondents have
no opinion &1.1% of disagree that interpersonal relationship enhances by
participate in Quality Circle
• 37.9% of respondents strongly agree that decision making ability enhances by

participate in Quality Circle, 56.8% of respondents agree that decision making
ability enhances by participate in Quality Circle, 4.2% of respondents have no
opinion & 1.1% of disagree that decision making ability enhances by participate in
Quality Circle.
96
• 29.5% of respondents strongly agree that communication ability enhances by
participate in Quality Circle, 66.3% of respondents agree that communication
ability enhances by participate in Quality Circle & 4.2% of respondents have no
opinion.
• 53.7% of respondents strongly agree that problem solving ability enhances by

participate in Quality Circle, 44.2% of respondents agree that problem solving
ability enhances by participate in Quality Circle & 2.1% of respondents have no
opinion.
• 41.1% of respondents strongly agree that leadership skill enhances by participate

in Quality Circle, 53.7% of respondents agree that leadership skill enhances by
participate in Quality Circle & 5.2% of respondents have no opinion.
• 55.8% of respondents strongly agree that interested in team work enhances by

participate in Quality Circle, 43.1% of respondents agree that interested in team
work enhances by participate in Quality Circle & 1.1% of respondents have no
opinion.
• 46.3% of respondents strongly agree that the colleague’s encouragement made

them to join in quality circles. 50.5% of respondents agree that the colleague’s
encouragement made them to join in quality circles. 2.1% of respondents have no
opinion. 1.1% of respondents strongly disagree that the colleague’s
encouragement never made them to join in quality circles
• 20.0% of respondents strongly agree that the superior’s motivation made them to
join in quality circles. 50.5% of respondents agree that the superior’s motivation
97
made them to join in quality circles. 1.1% of respondents have no opinion. 21.1%
of respondents disagree that the superior’s motivation made them to join in quality
circles.
• 23.1% of respondents strongly agree that the subordinate’s involvement made

them to join in quality circles. 68.4% of respondents agree that the subordinate’s
involvement made them to join in quality circles. 1.1% of respondents have no
opinion. 3.1% of respondents disagree that the subordinate’s involvement never
made them to join in quality circles. 1.1% of respondents strongly disagree that the
subordinate’s involvement never made them to join in quality circles
• 52.6% of respondents strongly agree that QC’s achievements made them to join
in quality circles. 43.1% of respondents agree that QC’s achievements made them
to join in quality circles. 3.1% of respondents have no opinion. 1.1% of
respondents disagree that QC’s achievements never made them to join in quality
circles
• 52.6% of respondents strongly agree that management’s encouragement made

them to join in quality circles. 42.1% of respondents agree that management’s
encouragement made them to join in quality circles 3.1% of respondents have no
opinion. 2.1% of respondents disagree that management’s encouragement never
made them to join in quality circles
• 41.1% of respondents strongly agree that participating in various competition

made them to join in quality circles. 43.1% of respondents agree that participating
in various competition made them to join in quality circles. 1.1% of respondents
98
have no opinion. 1.1% of respondents disagree that participating in various
competition never made them to join in quality circles.
• 37.9% of respondents strongly agree that learning new techniques made them to
join in quality circles. 57.9% of respondents agree that learning new techniques
made them to join in quality circles. 1.1% of respondents have no opinion.
• 47.3% of respondents strongly agree that attending various organization programs

made them to join in quality circles. 51.6% of respondents agree that attending
various organization programs made them to join in quality circles. 1.1% of
respondents have no opinion.
• 43.2 % of respondents strongly agree that rewards and awards made them to join
in quality circles. 43.2 % of respondents agree that rewards and awards made
them to join in quality circles. 9.4% of respondents have no opinion. 4.1% of
respondents disagree that rewards and awards are never made them to join in
quality circles. 2.1% of respondents strongly disagree that rewards and awards are
never made them to join in quality circles.
• 24.3% of respondents strongly agree that positive change of QC-members made
them to join in quality circles. 53.7% of respondents agree that positive change of
QC-members made them to join in quality circles. 17.9% of respondents have no
opinion. 4.1% of respondents disagree that positive change of QC-members never
made them to join in quality circles.
99
SUGGESTIONS
• All the non members of the quality circle should be given orientation by the
quality circle members and they should induce other to join. Being a member of
quality circles it should be made mandatory/compulsory.
• Employees should be invited for competitions of quality circles which will make
them more committed towards their work and increases productivity. Best
suggestions of the quality circles can be rewarded.
• Transparency between the management and employees make them to feel free and
explain the problems what they face in their real life. The management may also
100
give their feed back about the employee now and then to appraise their
performance in the projects.
• Management should make every effort to help the workers provide suggestions for
the betterment of the workers job and workshop. This will help the workers look at
the way they are doing their jobs.
• QC-members should be handle equally by the management. They should be never

treated as superior or subordinate based on their positions. Each and every level
of employee’s suggestion should be recognize in similar way.
• TQM & Quality Circle is a revolutionary, holistic concept. It actively has human
capital embedded in Lean Six Sigma in a manner that not only stimulates
commitment, integrity, work-life balance, passion, enjoyment at work and
employee attitudes, but also stimulates individual and team learning in order to
develop a motivated workforce and sustainable performance improvement and
quality enhancement for the organization.
CONCLUSION
Quality circle has become very important for improving a firm's process capabilities in
order to achieve fit and sustain competitive advantages. Quality circle focuses on
encouraging a continuous flow of incremental improvements from the bottom of the
organization's hierarchy. Autonomy and complexity are the other two job attitudes
enhanced through company’s implementation. Job satisfaction and company commitment
are work attitudes being the dimensions of employee attitudes. Quality circle can be
linked more with productivity which cannot be measured only by money. There are lot of
factors involved in developing the employees attitude towards quality circle. The
organization plays a facilitator role in developing quality circles. The transparency and
integrity of the organization is very much important for the smooth functioning of quality
circles. The culture has great impact on the quality circles based on Employee
Involvement, Employee Empowerment, Perceived Organizational Support, Employee
101
Engagement. If the employees are not satisfied their attitudes will be Exit, Neglect,
Absenteeism, Low Productivity and Low turn over. The success of the quality circle
movement in the Hi-Tech Arai Limited is definitely a collective effort and involvement
of both the management and employees. Hence it is evident that quality circles are the
tool for achieving total quality.
BIBLIOGRAPHY
1.Erez, M. (1994). Toward a model of cross-cultural industrial and organizational

psychology. In H. C. Triandis, M. D. Dunnette, & L. M. Hough (Eds.), Handbook of
industrial and organizational psychology (Vol. 4, pp. 559–608). Palo Alto, CA:
Consulting Psychologists Press.
2. Tait, M., Padgett, M. Y., & Baldwin, T. T. (1989). Job and life satisfaction: A
reevaluation of the strength of the relationship and gender effects as a function of the date
of the study. Journal of Applied Psychology, 74, 502–507.
3. Newbury Park, CA: Sage. Hofstede, G. (1985). The interaction between national and
organizational value systems. Journal of Management Studies, 22, 347–357.
102
4. Saari, L. M. (2000). Employee surveys and attitudes across cultures. In Business as
unusual? Are I/O psychology practices applicable across culture? Paper presented at the
Fifteenth Annual ConEmployee Attitudes and Job Satisfaction • 407 Reference of the
Society for Industrial and Organizational Psychology, New Orleans, LA.
5. Saari, L. M., & Schneider, B. (2001). Going global: Surveys and beyond. Professional
workshop presented at the Sixteenth Annual Conference of the Society for Industrial and
Organizational Psychology, San Diego, CA.
6. Judge, T. A., & Church, A. H. (2000). Job satisfaction: Research and practice. In C. L.
Cooper & E. A. Locke (Eds.), Industrial and organizational psychology: Linking theory
with practice
(pp. 166–198). Oxford, UK: Blackwell.
7. Jurgensen, C. E. (1978). Job preferences (What makes a job good or bad?). Journal of
Applied Psychology, 63, 267–276.
8. Cascio, W. F. (1986). Managing human resources: Productivity, quality of work life,

profits. New York: McGraw-Hill.
9. Mirvis, P. H., & Lawler, E. E. (1977). Measuring the financial impact of employee
attitudes. Journal of Applied Psychology, 62, 1–8.
10. Smith, P. C., Kendall, L. M., & Hulin, C. L. (1969). The measurement of satisfaction
in work and retirement. Chicago: Rand McNally.
11. Brayfield, A. H., & Rothe, H. F. (1951). An index of job satisfaction. Journal of
Applied Psychology, 35, 307–311.
103
12. Macey, W. H. (1996). Dealing with the data: Collection, processing, and analysis. In
A. I. Kraut(Ed.), Organizational surveys: Tools for assessment and change (pp. 204–232).
San Francisco: Jossey-Bass.
13. Schneider, B., & Bowen, D. E. (1985). Employee and customer perceptions of service
in banks:Replication and extension. Journal of AppliedPsychology, 70, 423–433.
14. Bracken, D. W. (1992). Benchmarking employee attitudes. Training and

Development Journal, 46, 49–53.
15. Robert E. Stevens, Robert L. Moore. (1981). Determination of significant factors for
success and a general model for implementing a quality circle process.
A STUDY ON EMPLOYEE’S ATTITUDE TOWARDS QUALITY

CIRCLE WITH SPECIAL REFERENCE TO HI-TECH ARAI LTD,
MADURAI
Respected Sir/Madam
I am M.MURUGADASS doing my second year M.B.A in Vel’s College of

Science, chennai. I would like to do a project on “A STUDY ON EMPLOYEE’S
ATTITUDE TOWARDS QUALITY CIRCLE” with respect to the employees in Hi-
Tech Arai limited Madurai. Kindly co-operate with me and provide me the necessary
information. I assure you that the information collected from you is solely for academic
purpose and will be kept confidential.
Personal Details:
1. Name : ………………………………….
104
2. Age : 20-25 26-30 31-35
36-40 Above 40
3. Sex : Female Male
4. Education : 10th 12th Diploma/ITI
UG. PG. B.E.
Others.
5. Unit : ………………………………
6. Designation : Supervisor Labour Technical assistant.
Operator Others.
7. Work Experience : 0-1 Years 1-2 Years 2-3 Years

3-4 Years above 4 Years
AWARENESS ON QUALITY CIRCLE:
1. How many Quality Circles are there in your unit? _____________________
2. Name the first Quality Circle initiated in your unit? _____________________
3. So far how many projects are completed by Quality Circles in your unit?
_____________________
4. Did all the projects done by Quality Circles are implemented?
_____________________
5. How many Quality Circles participated in competitions? (CII,QCFI etc.,)
_____________________
6. Do you think Quality Circles projects reduce the cost of functioning?
105
Yes No
7. Do you think Quality Circle activities consume the production time?
Yes No
8. Have you ever been a member of Quality Circle?
Yes No
9. What is the eligibility to join in Quality Circle?
__________________________________________
__________________________________________
__________________________________________
__________________________________________
__________________________________________
ATTITUDE TOWARDS QUALITY CIRCLE:
Do you think participating in quality circle activities would enhance my

(SA- Strongly Agree, A-Agree, N- No Opinion, DA- Disagree, SDA-Strongly Disagree)
SA A N DA SDA
1 Knowledge
2 Skill
3 Creative thinking skill
4 Interpersonal relationship
5 Decision making ability
6 Communication ability
7 Problem solving ability
8 Leadership skills
9 Interested in team work
Do you think participating in Quality Circle activities
106
( A-Agree, N- No Opinion, DA- Disagree )
A DA N
1 Consumes time
.
2 provide learning
.
3 No implementation of projects completed
.
4 Getting recognition
MOTIVATING FACTORS WHICH INFLUENCE EMPLOYEES:

SA A N DA SDA
1 Colleagues encouragement
.1
2 Superior’s motivation
.2
3 Subordinates involvement
.1
4 QC’s achievements
.4
5 Management’s encouragement
.
6 Participating in various competition
.6
107
7 Learning new techniques
.7
8 Attending various organizational programs
.8
9 Rewards and awards
.
10 Positive change of QC members
SUGGESTION TO IMPROVE THE ATTITUDE:

SA A N DA SDA
1 To display the details of quality circle projects

completed in the Notice Board
.
2 To recognize the members in the meeting
.
3 To empower them with more responsibilities
.
4 To Promote them as a team leader
.
5 To provide monitory benefits/ gifts for
. completion of projects
108
6 To make the members free from regular work
109

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1.

Quality circle is a management approach for an organization, centered on quality, based

Attitudes are evaluating statements either favorable or unfavorable concerning the

1.3 COMPANY PROFILE

REED VALVE ASSEMBLIES

MOULDED RUBER PRODUCTS

CUSTOMER OF HI-TECH ARAI:

The following are the customers of Hi-Tech Arai,

COMPETITORS OF HI-TECH ARAI:

OBJECTIVES OF THE COMPANY:

• To maintain a good environment in the factory as well as in the factory premises.

• To produce and maintain quality in the products.

• To increase the sales every year.

VISION OF THE COMPANY:

1993-“To become the market leader in the country within 5 years”

MISSION OF THE COMPANY:

MILESTONES OF THE COMPANY:

 V.P. Rathinasamy Nadar Road,

Sidco Industrial Estate (Shed 14)

 Trichy – Chennai Highways,

Kuthor Village, Trichy.

 Survey No 2729 / 1, K. Pudur

Industrial Estate, Madurai.

 Maruthi Kojo, Industrial Estate,

 Annamalai Complex, Trichy Road,

• Competitive price shall be achieved through sustained efforts on

• On-time delivery shall be maintained through team efforts.

• Manufacture high quality products at competitive prices by adhering to

• Promote energy saving and conservation of resources.

• Comply with all applicable legislative, regulatory and other

• Achieve the above by creating awareness among our employees through

Quality excellence is achieved by adopting the two major strategy.

It’s a Japanese word meaning “change for the batter” or “improvement”;

5S is a method of organizing a workplace and keeping it organized. The

1.SEIRI- Sort and dispose unwanted items.

VARIOUS DEPARTMENTS AND THEIR FUNCTIONS

HUMAN RESOURCE DEPARTMENT:

• Recruitment and training for new employees.

MAN POWER PLANNING:

PERFORMANCE APPRAISAL & PROMOTION POLICY:

The administrative department is headed by Mr. S. Sankarakailasam, SGM

• Handling of environmental legal issues.

Any organization with a paid up capital of 2 crores should have qualified

• Compiling the annual report of the organization.

The accounts department records, processes and maintains various financial

SYSTEM OF ACCOUNTING & FINANCIAL HIGHLIGHTS:

A – Goods having around 80% in terms of value.

OTHER MAJOR FUNCTIONS:

• Obtaining purchase indent from every unit.

EDP/ ERP DEPARTMENT

• Database management system used is Oracle 11.5.9.

OTHER MAIN FUNCTIONS OF ERP:

• To provide Hardware & Software services through out the organization.

This section is solely responsible for communication activities with Arai

This section headed by DGM marketing & manager customer support

Other major customers are:

QUALITY ASSURANCE DEPARTMENT

The QA Department is responsible for validation, problem solving & maintaining

Key result area:

Factors for Success:

• To know the various activities of the Quality Circle.

2.2 SECONDARY OBJECTIVE: