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Using the model for goal setting, evaluate Allstate’s goal setting process to determine whether or not Allstate has an effective goal-setting program.
Goals are future outcomes (results) that individuals and groups desire and strive to achieve (Hellriegel, & Slocum p. 192). Goal setting is the process of specifying desired outcomes toward which individuals; teams, departments, and organizations will strive and is intended to increase organizational efficiency and effectiveness. (Hellriegel, & Slocum p. 192) Allstate uses goal settings throughout their company. Goal setting is a key mechanism for increasing job satisfaction and performance because it permits employees to be self motivated. (Hellriegel, & Slocum p. 213) One particular goal that Allstate stands out amongst their competition is focusing on diversity. Allstate’s focus is to drive greater levels of employee and customer satisfaction by taking an integrated approach to diversity in the workplace and the market. Allstate’s competitors are focusing on diversity as a business issue and Allstate is attempting to measure the impact of diversity on corporate performance. Allstate boasts a rigorous measurement system as part of its initiative, and that process has proven a strong link between the diversity strategy and business growth. (Management Review, July/Aug. 1999)
Allstate has been able to set goals and hold their leaders responsible: this is where they tie their rewards to diversity which gives Allstate an edge among their competition. Allstate not only faced challenges from other insurance companies they were facing challenges from financial services firms and direct marketers. Allstate practice goal setting daily in their company.

Discuss the competitive advantage Allstate has from the development of the Diversity Index.
Allstate believes that the ability to make positive use of the diversity in their workforce and customer base thus helps Allstate strengthen its competitive edge. Some of the executives have found that diversity strategy has become Allstate’s competitive edge. Allstate focuses on two major strategies: Internal diversity- is where Allstate shows the employees on how they can excel in the company by giving them the tools, resources and opportunities to succeed. External diversity- is where Allstate is making certain that in the workforce matches the backgrounds, experiences, and sensitivities of the market are served. (Hellriegel, & Slocum p. 215).
Diversity Index
The diversity index at Allstate asks the following questions of employees:
• To what extent does our company deliver quality service to customers regardless of their ethnic background, etc.?
• To what extent are you treated with respect and dignity at work?
• To what extent does your immediate manager/team leader seek out and utilize diverse backgrounds and perspectives?
• How often do you observe insensitive behavior at work, e.g., inappropriate comments or jokes?
• To what extent do you work in an environment of trust? (www.allstate.com)
Allstate tries to mirror their workforce on diversity because they serve diverse markets. Allstate believes the concept of diversity is not limited to ethnicity and gender; it is based on a wider perspective that includes diversity in age, religion, sexual orientation, disability, etc. The strategy premised on five guiding principles of diversity: Inclusion; Work/Life Balance; Dignity and Respect; Commitment to Affirmative Action; and Leveraging differences.(www.allstate.com) Allstate developed a work forced diversity mission where they are making sure that they implement a high performance culture and by doing this it enables higher productivity, higher morale, more innovation, collaboration and risk taking. (www.allstate.com) Allstate takes pride in making sure in the workplace, they are handling diversity by being supportive and by doing this the employees will be motivated to set high performance on the job. Allstate manages diversity in the marketplace by creating growth and outperforming the competition by capitalizing on the demographic changes in the marketplace. This will be achieved by understanding and satisfying the different needs and requirements of existing and potential customers through innovative approaches, products and services. (www.allstate.com) Allstate is committed to diversity by having diversity trainings, employee surveys, recruitment, leaders are held accountable, and they stress the importance of diversity on their website.

Recommend the types of high-performance reward system Allstate should use to motivate it employees to reach its diversity goals. There are several types of high performance reward systems that can motive Allstate’s employees. First, are informal rewards- interaction with others which is co-workers, superior and customers. Second, is profit sharing- gives employees a portion of the department’s or organization’s profits. Third, are skilled based pay-programs compensating an employee according to the number and level of job related skills they have mastered. Last, are flexible benefits- allowing employees to choose the benefits that are important to them. (Hellriegel, & Slocum p. 213). Allstate could use informal rewards to motivate their employees by having employee of the month. Allstate can have a brief biography of the winner and hang it in their break room and possibly this person can have a closer parking space for the month. Whenever they get 12 people for the year they can pick one person who will become employee of the year and they could receive monetary gifts and a plaque.
Another method that Allstate could use to motivate their employees is having quarterly bonus on who has the highest sales. The reward could be an all inclusive paid vacation from a selection. This method is beneficially because it will be given to the person immediately and the employees will appreciate it because it recognizes individuals. Allstate could have annually raises for their employees. Little incentives can go along way if Allstate will reward their employees immediately instead of whenever they want.

If you were an Allstate employee, discuss whether or not you would be motivated by the Diversity Index and QLMS. Provide a detailed explanation.
Allstate takes a snapshot of twice a year of all of the 36,000 employees through a survey called diversity index. Allstate uses QLMS (Quarterly Leadership Measurement System) is a detailed survey that drills down to the unit level with specific measures as to how the individual manager is performing on leadership aspects of the job, including diversity execution. (Hellriegel, & Slocum p. 216). All levels of managers are held accountable for diversity through the QLMS and organizational success factors, which is part of their annual performance review that determines pay decisions. Allstate has many advantages working for their company using the diversity index and the QLMS. The diversity index allows someone to move up in their company in and executive and managerial category. It allows Allstate's ability to provide tailored diversity education with a six-month follow-up. It has been determined that employees who participate in diversity training report higher levels of overall job satisfaction than those who do not receive training. As long as Allstate is committed to making sure that the diversity index program is useful in getting employees feedback anyone could work for a company like Allstate.

References:
Hellriegel, D., & Slocum, J.W., Jr. (2011). BUS 520: Organizational Behavior: 2011 custom edition (13th ed.). Mason, OH: South-Western Cengage Learning.
Customer Insight A Key Competitive Advantage By Maria Woehr Dec 13, 2006 URL: http://www.financetech.com/showArticle.jhtml?articleID=196603999
Diversity at Allstate: A Competitive Weapon by Louisa Wah July/August 1999 Management Review
www.allstate.com

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