In an attempt to cope with increasing international competition and environmental turbulence, many U.S. companies are paying greater attention to and implementing alternative organizational designs (Kanter, 1983). A primary element of these designs, the use of formalized work groups in diverse work contexts, is exemplified by an ever-increasing number of quality circle programs. Like all organizational groups, circles are influenced by their internal dynamics and positions in the formal and informal organizational structures. The present investigation explores the relationship between communication networks and effectiveness in quality circles.