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Allstate

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Allstate

Gary Shelton

Organizational Behavior

July 19th, 2011

Abstract

Using the model for goal setting, evaluate Allstate’s goal setting process to determine whether or not Allstate has an effective goal-setting program.

In my opinion, Allstate has an effective goal setting program. There are four steps in there program: succession programming, development, measurement, and accountability and reward. Succession programming is a way of getting diverse candidates (cream of the crop) for key positions. People tend to trust employees like themselves regardless of race, gender, age, religion, sexual orientation, or cultural background. Allstate has over 36,000 employees 60 percent are women, and nearly 30 percent are minorities (“Diversity”, 2011). “More than 40 percent of officers and managers are women and nearly 20 percent come from one of five minority groups”, which means that all backgrounds are represented in some way within the company (“Diversity”, 2011). In the development program, a performance evaluation is used to assess job skill for advancement. Employees give feedback to leaders to evaluate and use for future programs. Training courses are mandatory and Allstate has had about 640,000 hours of diversity classroom time (Wah, 1999). The next step, measurement is done twice a year by employees to give feedback to management and based on the responses to the Diversity Index allows Allstate to gauge the effectiveness of their diversity initiatives. Programs may be incorporated to address any problems and improve work conditions. Step four of Allstate’s goal accountability and reward. Diversity plays such a huge role within the company that “25 percent of each manager merit pay is based on the Diversity Index and the QLMS” (Hellriegel, Slocum, 2011, p.216). Allstate offers a great work/life balance by having daycares on some cites, help employees with disabilities and even has a flexible work arrangements.

Discuss the competitive advantage Allstate has from the development of the Diversity Index.

The Diversity Index is an online employee feedback system that measures employee perceptions. The results of the Diversity Index holds management accountable, withholding 25 percent of a managers merit bonus if the Index goal is not met. Employees who participated in diversity training have more job satisfaction than someone who didn’t complete the training. With the questions that are asked of employees in the QLMS, Allstate can find out how the company services based on ethnic background, how employees are treated, if there are any unethical actions taking place such as insensitive behavior, and if there opinions are welcomed within the work place. Making sure employees are happy is the best way to decrease retention and build the company from within. Picking well diverse employees means that they have the competitive advantage to reach more people and build a wider customer base.

Recommend the types of high- performance reward systems Allstate should use to motivate its employees to reach its diversity goals.

There are four popular types of high-performance reward systems: informal, profit sharing, skill based pay and flexible benefit programs. Informal recognition programs though leaders have dismissed them in the past, are now becoming popular. They are more cost effective, flexible, timely, and easy to use. A personal note handed from your supervisor immediately stating what a good job you are doing. Profit sharing programs rewards the employees based on the organizations earnings. For example, at Verizon Wireless our bonuses come from how good the company does as a whole the year before. Skill based pay programs give employees raises based on learning a new skill the only bad thing about that is that a person can ‘top out’ at the highest skill. For example, AT&T does something similar to this, pay increases are given every six months until you reach 48 months, you ‘top out’ and there is nowhere higher to go unless you change jobs. The last program, flexible benefits allows employees to “choose the benefits they want, rather than having management choose for them” (Hellriegel, Slocum, 2011, p.209). Employees can choose from cash, to insurance, to retirement plans. Retirement plans, which can be hard to keep up, are also popular because they allow employees to make decisions based on need. With the option of retirement plans, organizations can control cost and it shows the value in what employees choose.

I think out of the four programs Allstate could benefit from having all except the skill based pay because you ‘top out’ once you have learned and mastered everything about your job. Writing notes, giving bonuses based on how the company does, and allowing employees to choose there own benefits will motivate employees to achieve the goals set by the company. If an employee thinks that the reward doesn’t match the goal the less likely they are to reach the goal. External and internal rewards boost the employee’s chances of reaching the companies goals. Though not all rewards are accepted by different cultures, what works in the United States may not work in Japan, and companies must acknowledge the cultural differences.

If you were an Allstate employee, discuss whether or not you would be motivated by the Diversity Index and QLMS. Provide detailed explanation.

If I were an Allstate employee I would be motivated by the Diversity Index and QLMS because it shows that my company cares about me as a person. I have the opportunity to express my concerns and/or any violations witnessed without fear of retaliation. Taking the QLMS twice a year lets the company reach any new employees and to see if current staff is stressing the importance of inclusion. Allstate has a very diverse and strong training programs in place for advancement, has a great work/life balance, and great compensation packages:

Allstate aims to attract professionals who collectively embrace and inclusive value system that leverages diversity, equal opportunity, talent development, lifelong learning and work/life balance. Allstate workplace diversity strategy helps us attract and retain the best talent, drive high-performance, provide tailored service and products to a diverse customer base and strengthen our corporate brand in the marketplace and labor market. (“Diversity, 2011)

Allstate also has a partnership that is a contract explaining what they expect from there employees and what employees can expect from the company. I have tried myself to get into the Allstate family, having had a cousin who worked for them for over six years and progressing.

The diversity index and its questions allow the company to know if employees and managers truly understand how diversity affects meeting daily goals. Improvements can be made based on the responses received on the index survey such as:

• Do we deliver quality service to ALL our customers?

• Are you treated with respect without intimidation or discrimination?

• Are your concerns being heard?

By addressing a concern before it becomes a problem, Allstate will continue to meet and exceed customer and employee expectations. Having a diverse workforce will help them maintain their competitive edge in the insurance industry. Including the needs of its customers, employees and managers insure that Allstate will achieve their goals.

References

Diversity. (2011). Retrived July 15th, 2011, from http://www.allstate.com/diversity/ workplace.aspx

Hellriegal, D., Slocum, J.(2011).Organizational Behavior.(13th ed.). (p34, 37-40, 494-496). Mason, OH: Cengage Learning.

Social Responsibility. (2011). Retrieved July 15th, 2011 from http://www.allstate.com/social-responsibility/business-practices/main.aspx

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