Human Relations in Organizations: Applications and Skill Building 8th Edition by Robert Lussier

Exercise 46

Friedman's Motivation Technique
The following conversation takes place between Art Friedman and Bob Lussier. In 1970, Art Friedman implemented a new business technique. At that time the business was called Friedman's Appliances. It employed 15 workers in Oakland, California. Friedman's is an actual business that uses the technique you will read about.
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!
In 1976, Art Friedman changed his business to Friedman's Microwave Ovens. He developed a franchise operation to use his motivation technique of making everyone a boss.
Answer the following questions. Then in the space between questions, state why you selected that answer.
Could Art's technique work in all organizations? Explain your answer.