Quality circles are part of the movement to provide workers with increased autonomy, responsibility, and authority. Key elements of quality circles are the characteristics of their members, volunteer participation, regular meetings, training, problem identification, and solution implementation. The theoretical bases of quality circles include: McGregor's Theory Y (1960), a management style that incorporates employees into the management process; factors identified by Herzberg (1966) that enhance or detract from job satisfaction; and Maslow's hierarchy of human needs (1954). Five steps are essential to successful implementation: (1) understanding and commitment of top management; (2) active involvement of middle managers; (3) intensive training for all participants; (4) preparation of the organization for implementation; and (5) establishment of rules and procedures. Training is the key element. The four levels of people who need to receive training are management, facilitators, team leaders, and circle members. Training developers need to take into account several organizational and process considerations. The outcomes of quality circles include improved quality and productivity, a better-functioning organization, and role changes. This fact sheet includes a bibliography of resources, one of which is available from the Educational Resources Information Center (ERIC) system. (DC)