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Management Fundamentals 5th Edition by Robert Lussier
Edition 5ISBN: 978-1111577520Management Fundamentals 5th Edition by Robert Lussier
Edition 5ISBN: 978-1111577520 Exercise 30
Following is a conversation between Bob Lussier, this book's author, and Art Friedman, about a business technique that Friedman implemented at his business, Friedmans Appliance. At the time, Friedmans, in Oakland, California, employed 15 people. 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!
Although Art Friedman has now retired, Friedmans Appliance still utilizes his motivational technique of making everyone a boss at its store. Friedmans continues to focus on service by offering delivery to job sites and residences, installation, as well as removal of old appliances. Friedmans also has a Web site ( http://www.friedmansappliance.com ) where you can buy microwave ovens, ranges, dishwashers, refrigerators, and other accessories. The Web site provides a number and an e-mail address for customers who want to contact Friedmans directly.
Support your answers to the following questions with specific information from the case, the text, and/or the Web or other source.
When Friedman made the decision to change how his company was run, what was the classification of the problem?
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!
Although Art Friedman has now retired, Friedmans Appliance still utilizes his motivational technique of making everyone a boss at its store. Friedmans continues to focus on service by offering delivery to job sites and residences, installation, as well as removal of old appliances. Friedmans also has a Web site ( http://www.friedmansappliance.com ) where you can buy microwave ovens, ranges, dishwashers, refrigerators, and other accessories. The Web site provides a number and an e-mail address for customers who want to contact Friedmans directly.
Support your answers to the following questions with specific information from the case, the text, and/or the Web or other source.
When Friedman made the decision to change how his company was run, what was the classification of the problem?
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Management Fundamentals 5th Edition by Robert Lussier
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