Allstate Insurance Company

Published on May 2016 | Categories: Documents | Downloads: 17 | Comments: 0 | Views: 232
of 9
Download PDF   Embed   Report




Allstate Insurance Company Leadership and Organizational Behavior



This paper I will discuss why Allstate’s goal setting is effective in its workplace and how it is very important in any organization. Secondly, I will discuss why Allstate diversity index program gives them a competitive advantage over other companies. Thirdly, I will list types of high-performance reward system that Allstate uses to encourage its employees to reach its diversity goals. Finally, I will discuss why I support Allstate’s Diversity index and quality leader management system that motivate their employees


"Allstate Insurance Company"

Goal setting is the process of setting targets for accomplishment and has been used by individuals and groups to measure performance and get results. In the business world, goals commonly take the form of quotas, work norms, objectives, deadlines and budgets. Allstate Corporation managers viewed diversity not as a goal but as a process that is incorporated in the daily life of the company. Allstate launched its first positive action program back in 1969, which at the time their commitment to diversity was not linked to staffing, growth, and maintenance strategies toward business performance. As the book describes, although these initiatives were considered ground-breaking in their day, they were not linked to Allstate’s business strategy. It has been Allstate’s position that diversity is not about biased mandates or legal responsibility, but pay attention to inner and outer strategy. The inner diversity focus is about “unlocking the potential for excellence in all workers by providing them the tools, resources, and opportunities to succeed.” The outer focus of diversity is about making certain that the workforce matches the experiences, backgrounds, and sensitivities of the markets it serves. (Hellriegel/Slocum, 2011, pg. 215)


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

Goal setting is the process of setting targets for accomplishment and has been used by individuals and groups to measure performance and get results. In the business world, goals commonly take the form of quotas, work norms, objectives, deadlines and budgets. Employees are evaluated and considered at occasional times and given advice as far as their progress. With consideration to the model, this goes hand-in-hand with rating their performance and providing feedback. Finally, those that perform to the highest levels are rewarded with advances and increases in percentages of merit pay. This, again, goes in-step with the model that as rewarded, satisfaction comes through or, if they don’t make it, they understand why and will adjust their behavior for that reason to make themselves successful. Allstate give their employees a path way to success. They offer many resources to be the best employee that they can be. They have quarterly leadership measurements as well as the survey to get feedback from employees. Allstate focal point is diversity, a four step process to reach goals. This management system uses goal difficulty and goal simplicity as groundwork for motivating its employees, along with involving the manager and employees in jointly setting goals for performance and personal development, while periodically evaluating employees’ progress toward achieving these goals, and then rewarding employees.

5 Hellriegel/Slocum (2011, pg. 194)(Hellriegel/Slocum, 2011 p.192) also states that to survive in today’s competitive global market, setting challenging goals that take into account the crucial factors of time and quality and providing feedback to employees are no longer options, but it must happen. The first step which is the succession programming explains how Allstate identified and developed candidates for each key position. Allstate’s management information system enables it to track and measure key drivers of career development and career opportunities for all of its employees, ensuring that the company’s future workforce will be diverse at all levels. The goal of which came to manifestation; women were empowered, minorities grew above national averages, Hispanics, and people with diverse cultures now have positions in the company. The second step is development. Through the company’s employee development process, all employees receive an assessment of their current job skills and a road map for developing the critical skills necessary for advancement. The third step which is measurement allows the company to take a survey called the Diversity Index twice a year. An online employee survey and feedback process called the Quarterly Leadership Measurement System (QLMS). The fourth step for Allstate is accountability and reward. Allstate holds its managers accountable in ensuring that the employees are given the proper training and tools needed to be successful. Allstate clearly demonstrates an effective goal setting program as well as understands that a goal serves as a motivator for its employees to help them compare their present performance with that is required to achieve their goals.

6 Discuss the competitive advantage Allstate has from the development of the Diversity Index Corporate diversity training programs aims are to help employees understand personal differences and how these differences influence our interactions, moral and work performance. Understanding diversity includes more than race and ethnicity; it includes gender, sexual orientation, age and religion. Allstate diversity strategy is aimed at retaining the best employees. An employee can count on being treated with respect and dignity and in turn the company expects the employees to develop their skills to out perform the competition. According to Adah Chung, trends in diversity training programs change with the changing population and needs of the workforce. You need to understand the needs of an organization to provide the best diversity program that will help employees work together. The fact that Allstate has such a diversified policy, this serves as an attraction to diverse people to make this organization a likely employer of choice. When you have different cultures with different ideas, and perspectives come together under one organization, the greater the creativity and innovation ensue, which is what Allstate offers to its employees.

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

Skilled based pay programs would be a big asset and reward program for Allstate. To pay employees based on their worth in the market will be a good decision. Employees can be a valuable asset to an organization if they are highly developed. Allstate gives its employees the tools, resources and opportunities that they need to succeed. The employees appear to be very motivated to work for the company with the reviews that are given by its diversity index. People are motivated in many different ways, therefore in order for Allstate’s reward system to work to reach its diversity goals, managers and supervisors have to know what it will take to motivate that individual and to reward accordingly. Understanding what motivates a person can help a manager better reward that person behavior that contributes to achieving the objectives of the organization. Allstate, recognition and rewards can be formal and informal. Informal recognition, meaning, spontaneous or immediate, can be a simple thank you or expressions for a job well done. In fact, most of a company’s recognition activity should be informal. It indicates a culture or atmosphere that acknowledges good behavior when it happens.

8 If you were an Allstate employee discuss whether or not you would be motivated by the diversity index and QLMS. Why? I would be motivated by Allstate’s Diversity index and QLMS strategy, because it is clearly designed to be successful and to allow equal employment opportunities. For three consecutive years, Diversity Inc has named Allstate Insurance Company to the "Top 50 Companies for Diversity" list. Allstate was also recognized as a Top 10 Company for African-Americans and a Top 10 Company for the Recruitment and Retention of diverse employees. I would highly consider Allstate as an employer of choice. .

9 References Hellriegel & Slocum. (2011) Custom Edition (13th ed) 2011,2009 South-Western, Cengage Learning. .

Sponsor Documents

Or use your account on


Forgot your password?

Or register your new account on


Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in