Art Friedman started his business in 1970 as Friedmans Appliance, selling all types of major appliances. In


Art Friedman started his business in 1970 as Friedmans Appliance, selling all types of major appliances. In 1976, Friedman changed the company name to Friedmans Microwave Ovens to match his new strategy of focusing only on microwave ovens, which was the new thing back then. His goal was to be the absolute best place to buy a microwave oven and its accessories. Friedmans sold more than two million microwaves. His third strategic move was to franchise his microwave business, using Art Friedman's motivational technique of making everyone a boss. Friedmans also went online. For more than 35 years, Friedman has been accomplishing its goal by providing superior service, good prices, and unconditional satisfaction guarantees.

The company name changed back to Friedmans Appliances. Today it is still a family-owned and -operated appliance dealer with a new strategy specializing in built-in appliances and kitchen remodeling. Friedmans Appliance combines the best of online convenience with traditional face-to-face customer service in a 24,000-square-foot showroom, which is located in Pleasant Hill, California. It features fully functioning appliance vignettes that allow a unique opportunity to experience firsthand many of the amazing products it offers. Pay a visit to the showroom, or call its friendly and professional staff at 925-808-2950. It's a great way to discover why Friedmans Appliance genuinely is your one true appliance authority in Northern California.103

Today, Art Friedman is retired. But if you visit the company Web site home page, you will find a link to an animated video titled 'A Few Words from Art Friedman.' The original Friedmans store employed 15 people in Oakland, California. Friedman believed that his employees were not motivated, so he implemented the following changes to motivate his employees. The following conversation took place between Bob Lussier and founder Art Friedman.

Bob: What is the reason for your success in business?

Art My business technique.

Bob: What is it? How did you implement it?

Art I called my 15 employees together and told them, 'From now on I want you to feel as though the company is ours, not mine. We are all bosses. From now on you decide what you're worth and tell the accountant to put it in your pay envelope. You decide which days and hours you work and when to take time off. We will have an open petty cash system that will allow anyone to go into the box and borrow money when they need it.'

Bob: You're kidding, right?

Art: No, it's true, I really do these things.

Bob: Did anyone ask for a rise?

Art: yes, several people did. Charlie asked for and received a $100-a-week raise/

Bob Did he and the others increase their productivity to earn their raises?

Art: Yes, they all did.

Bob: How could you ran an appliance store with employees coming and going as they pleased?

Art: The employees made up schedules that were satisfactory to everyone we had no problems of under or overstaffing.

Bob: Did anyone steal from the petty cash box?

Art No. Bob: Would this technique work in any business?

Act it did work it still works, and it will always work!

GO TO THE INTERNET: To learn more about Art Friedman and Friedmans, visit their Web site (http friedmansapplia ncecom).

Support your answers to the following questions with specific information from the case and text or with other information you get from the web or other sources.

I. Which University-Iowa, Michigan, and Ohio State- leadership styles did Mt Friedman use?

2. Which specific motivation level, factor, and need (from the content motivation theories) applies to Friedmans Appliance?

3. Do equity and expectancy theory apply to this case? Explain

4. which type of reinforcement did Friedman use?

5. Do you know of any organization that use any of Friedman's or other triusual techniques? If yes, what is the organizations name? what does it do?

6. Could Friedman's techniques work in all organizations? Explain you answer.

7 Ina position of authority, would you use Friedman's techniques? which ones?


8. Which of the Big Five personality dimensions is best illustrated in this case by Art Friedman (Chapter 2)?

9. Does Friedman have a Theory X or Theory V attitude (Chapter 2)?CASE EX E RC ISE AN DROL E- PL AV

Preparation. From Case question 7 which of Friedman's motivational techniques would you use to motivate franchisees? Which techniques of your own or from other organizations would you use? Justify your choice of motivation techniques.

In-Class Groups: Break into groups of four to six members and develop a list of motivational techniques group members would use, with justification Select a spokesperson to record the techniques with justification and present them to the class.

Role-Play: One person (representing him - or herself or a group) may given the speech to the entire class, stating which new motivational techniques will be used and explaining each technique

A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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