Quality circles involve small groups of employees who do similar work meeting regularly to identify and solve problems arising during their work. The objectives are to effectively develop human resources, improve quality of work life, and utilize creative abilities. There are steps to developing quality circles including communicating importance, composing circles, and initial problem solving. Total quality management focuses on continuous improvement, customer needs, and group problem solving to encourage employee empowerment. It requires cultural change and long-term commitment from management to be effective. Key components include customer orientation, continuous improvement, and employee involvement.