”Allstate Insurance Company”
Dr. Felicia Bridgewater
Leadership and Organizational Behavior - BUS 520
May 1, 2011

When John F. Kennedy put the provision for affirmative action into effect, all of the companies knew that they could not deny anyone a job because of their race, creed, or sex (www.oeod.uci.edu). No one knew at that time how they where going to incorporate affirmative action into their business so that everyone involved would have a positive outcome. The executives at Allstate realized that in order for their current employees not to feel resentment for the new changes they were going to be put into effect, they had to come up with a way in which the company can thrive even better than it had before. In order to do that they came up with four steps that would help them to promote diversity in the workplace.
Using the model for goal setting, evaluate Allstate’s goal setting process to determine whether or not Allstate has an effective goal-setting program. After comparing the model for goal setting with the steps that Allstate had put into effect, I believe that they do have a successful goal-setting program already established. Nevertheless, when you are trying to make sure that a business is operating as smoothly and efficiently that it can, there will always be room for improvement. One way they could improve is instead of giving, each manage a twenty-five percent of each manager merit pay, and why not break that down to at least five percent for every employee (Hellriegel. 2010). That way even thought the percentage is lower but all the employees would be getting a reward based on the Diversity Index and QLMS. Everyone in the company, no matter what background that that individual may have, needs to feel like what they do for the company is not taken for granted. Managers at this time are receiving a twenty-five percent increase of their merit pay and all the non-management employees receive may receive a couple discounts here or there depending on whether or not they decides to use the extra service that the company offers. In order for the company to become even more diverse everyone needs to able to feel like they are included in rewards part of the program. You may have some employees who may not have any children; therefore, they would not able to utilize the free childcare. Even though Allstate has several programs in place to assist their employees in whatever there personal needs maybe, they still can run the risk that someone within the company will not be satisfied. So in order to remedy that, instead of the managers just receiving a increase in salary based on their merit pay, all of the employees within the company should have a pay increase based on their merit pay. The percentage may be smaller than what the mangers where receiving but I believe that it gesture would be well received by all involved.
Discuss the competitive advantage Allstate has from the development of the Diversity Index. The human resource department at Allstate realized from the very beginning that diversity was not base on politics or any legal obligations that the company might have (Hellriegel. 2010). They realized that in order to make the company as completely diverse as it can be they needed to make it as diverse in spirit as it was with people. In order to do they are going to have to focus on hiring individuals that are diverse in all areas. When Allstate developed there diversity program, they did that with the intention to better the company as a whole and the community they serve at large (Hellriegel. 2010). There intent was not just to follow the rules of the government but also to better serve their employees and the communities that they serve. By focusing on the communities as well as the employees within the company, they are able to keep up with the changes that the community might be going through at any given time. If Allstate keeps up with the changes that might be going on within the community, it will better help them to serve the community. Also by getting the employees involved in various community projects, you would also become to know some of the members of the community on a first name basis. When that happens, Allstate would be not only have a diversified company but the clients that they serve would be diversified as well.
Recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals. Right know the only reward system that Allstate has benefits the managers themselves, they need a reward system that is going to benefit not only the mangers but the average employee as we (Hellriegel. 2010). In order to do so say they could have each manger chose an employee that has done exceptionally well for either that month or that quarter and reward them with maybe a dinner for two , time off with out using their own leave. Another way that they could reward their employees is instead of always rewarding that employee that always stands out, have the managers highlight that employee that is a very good team player, that is always willing to work behind the scenes and never asks for that recognition (www.loyaltyworks.com). Allstate should use a varied reward system that way the employees want get bored and will not think the reward system is not worth there time. By using, a varied reward system there will be something to motivate even the most uncooperative employee. By having a reward system it will keep the buzz around the office going and help to motivate the employees to go beyond on their current job duties. They will pick up the ball and encourage others to do the same also. When that happens, the outcome is better for the employees, the client and the company as a whole.
If you were an Allstate employee, discuss whether or not you would be motivated by the Diversity Index and QLMS. Provide a detailed explanation. As an employee of Allstate I would not be motivated by the Diversity Index or the QLMS survey, the reason being is that as an employee I would feel pressured to give the company an above average score just in order to for my manager to receive the twenty five percent increase in their merit. As an employee, I would feel like that I was working for my manger instead of the company itself. If the employees are doing all the work and the mangers are reaping the rewards for their work, what does that say about the morale of the company? An employee’s compensation should not be based on whatever their score was on the diversity index or the QLMS survey (Hellriegel. 2010). An employee’s should receive compensation based on how well their job performance is and how well they work with other employees within the company. In order for that to happen, the human resource department at Allstate will have to figure out way to not only reward management but also to include remaining employees within the company. By doing that the morale be better and the employees will like coming to work and do their job more efficiently for the company and the clients that serve. When a company rewards their employees based on their job performance instead of some survey they feel that the company appreciates what they do. In my opinion in order for a company to be successful, you have to have dedicated employees, which in turn equals to clients that are satisfied with the company as a whole. If the employees and the clients are happy with the company then in return the company then turn a hefty profit all the way around. In conclusion a companies employees needs to be as diverse as the clientele that they serve. A business should not just hire like-minded people, they should be willing hire individuals that are going to have thought provoking ideas no matter what ethnicity, religion, or sexual orientation that they may have. A company has to be willing to change protocol every once and a while so that the employees will not feel like they have gotten into a mundane routine. In addition, to keep the spirit within the company alive, I feel every business should have an effective reward system in place. They should not have a system that would reward the same type of employees all the time; the reward system should be as diverse as the company itself should.

References
Hellriegel, D., & Slocum, J. W., Jr. (2011). Organizational behavior: 2011 custom edition (13th ed.). Mason, OH: South-Western Cengage Learning.
A Brief History of Affirmative Action. (2010). Retrieved from www.oeod.uci.edu
Employee Recognition Programs. (n.d.). Retrieved from www.loyaltyworks.com