Quality circles are voluntary groups of employees that meet regularly to identify, analyze, and solve work-related problems. They were first established in Japan in 1962 and aim to improve quality and productivity through employee participation. Quality circles typically have a structure that includes a steering committee, coordinator, facilitator, circle leader, and members. They use various problem-solving techniques like brainstorming, cause-and-effect diagrams, and data analysis to identify issues, generate solutions, and implement approved changes. When properly implemented, quality circles can increase productivity, quality, and employee morale.