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    Case Study-Ch 3

    Uploaded by

    Sufian Rasheed
    Art Friedman started Friedmans Appliance in 1970 selling major appliances, changing the name to Friedmans Microwave Ovens in 1976 to focus on microwaves. His goal was to be the best place to buy microwaves and accessories. He franchised the business and implemented an unconventional motivation technique making employees feel like bosses who decided their pay and schedules. This technique increased productivity and still works today without issues like theft or understaffing. Friedman believed empowering employees in this way would always motivate them.

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    Case Study-Ch 3

    Uploaded by

    Sufian Rasheed
    111 views2 pages
    Art Friedman started Friedmans Appliance in 1970 selling major appliances, changing the name to Friedmans Microwave Ovens in 1976 to focus on microwaves. His goal was to be the best place to buy microwaves and accessories. He franchised the business and implemented an unconventional motivation technique making employees feel like bosses who decided their pay and schedules. This technique increased productivity and still works today without issues like theft or understaffing. Friedman believed empowering employees in this way would always motivate them.

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    Art Friedman started Friedmans Appliance in 1970 selling major appliances, changing the name to Friedmans Microwave Ovens in 1976 to focus on microwaves. His goal was to be the best place to buy microwaves and accessories. He franchised the business and implemented an unconventional motivation technique making employees feel like bosses who decided their pay and schedules. This technique increased productivity and still works today without issues like theft or understaffing. Friedman believed empowering employees in this way would always motivate them.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    111 views2 pages

    Case Study-Ch 3

    Uploaded by

    Sufian Rasheed
    Art Friedman started Friedmans Appliance in 1970 selling major appliances, changing the name to Friedmans Microwave Ovens in 1976 to focus on microwaves. His goal was to be the best place to buy microwaves and accessories. He franchised the business and implemented an unconventional motivation technique making employees feel like bosses who decided their pay and schedules. This technique increased productivity and still works today without issues like theft or understaffing. Friedman believed empowering employees in this way would always motivate them.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Art Friedman—Friedman Appliance

    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. 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 30 years, Friedmans has been accomplishing
    its goal by providing superior service, good prices, unconditional satisfaction
    guarantees, and cooking classes to educate customers on how to get the most from their
    microwave. Friedmans also offers installation and repair services. Friedmans has sold
    more than two million microwaves. Today, Art Friedman is retired, but his franchised
    name is still going strong, primarily in California. Some of the independently owned
    stores that bear the Friedmans name continue to sell only microwaves, others also sell
    other types of appliances, and some also offer full kitchen renovations.

    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, and these techniques are still being used today. 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 raise?

    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 run 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?

    Art: It did work, it still works, and it will always work!

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