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Allstate

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ALLSTATE INSURANCE COMPANY
ONE COMPANY FOR ALL

r
Business 520: Organizational Behavior

October 23, 2011
1. 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 specifying outcomes toward which individuals, teams, departments and organizations will strive and is intended to increase organizational efficiency and effectiveness (Hellriegel and Slocum, 2011). Goals motivate individuals, teams and whole organizations to perform better and at higher level (Adenike, 2009). As a matter of fact, it is considered one of the most important motivational tools for affecting the performance of employees in organizations (Hellriegel and Slocum, 2011). Achieving goals is certainly not an easy task, but Allstate Corporation believes that its diversity strategy is one of the company's most important competitive weapons. According to James DeVries, senior vice president of human resources, this strategy has two major points: one internally and one externally focused. The internal diversity focus is about discovering potential in Allstate's workforce by providing them with all necessary tools, resources and opportunities to succeed. The external focus of diversity is about making sure that the Allstate's workforce matches the experience, backgrounds and sensitivities of the markets it serves (Hellriegel and Slocum, 2011). Allstate made its first action program back in 1976. The main question human resource management faced was how to incorporate all differences together and make a program that will lead to achievement of corporate goals? They made a program that consists of four steps:
- Succession Programming. Allstate identifies and develop candidates for each key position. Their management informational system enables them to track and measure key drivers for career development and career opportunities for all of its employees making sure that company's future workforce will be diverse on all levels (Hellriegel and Slocum, 2011). They have a specific method of recruitment. They use minority colleges and universities to recruit future employees. That's how they make sure their workforce is diverse as possible.
- Development. All employees receive an assessment of their current job skills as well as a instructions for developing major skills necessary for advancement. Every employee also gets a feedback which they can use as a base for their future development programs.
- Measurement. Twice a year, employees are surveyed through Diversity Index and Quarterly Leadership Measurement System (QLMS). The main purpose of these surveys is to see in what extent the company delivers quality service to their customers as well as to see what is it the situation inside the company. Management communicates the results through intranet and provides feedback from employees to create program that will, not only be used to solve problems, but also to improve future work. Allstate has an effective goal-setting program because it makes sure that their employees have knowledge, skills and abilities to achieve corporate goals; the employees are committed to the goals because they are motivated not only by direct compensations (money rewards), but also by indirect compensations such as on-site child care, laundry service, etc. ( Adenike, 2009); the employees are provided with feedback on their progress toward the goal and they have all tools and resources to succeed.
2. Discuss the competitive advantage Allstate has from the development of the Diversity Index. Allstate managers view diversity not only as a goal but as a process that is integrated into daily life of the company (Hellriegel and Slocum, 2011). Their diversity strategy represents a strong competitive advantage for the company. This is because Allstate believes that differences in their workforce define and strengthen them. And also benefits motivation quality (Fay, 2008). Their commitment to diversity affects everything they represent and everything they do – the way they design their products and services as well as the way they communicate with their costumers (Allstate, 2008). Their workforce reflects market place they serve. For example, off nearly 37,000employees, 58.8% are women and more than 30% are minorities (Allstate, 2011). Diversity in Allstate is critical in meeting the needs of diverse costumers they serve. Allstate is connecting to their customers by understanding what they value the most and how they want Allstate to serve them (Allstate, 2011). That's why, once again, their diversity strategy is competitive advantage because it enables Allstate to sustain effective organization that drives a high-performance which leads to high productivity, higher morale and more motivation. Allstate workforce mirrors the diverse market place they serve. Whole diversity strategy is set and guided by an Executive Diversity Council and implemented by a chief Diversity and Organization Effectiveness Officer. This just proves how important diversity is to Allstate.
3. Recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals. Provide a rationale with your answer. High-performance reward systems are important in motivating employees to do their job as best as they can. It also affects important decisions of employees taking a job, leaving a job and performance on the job ( Adenike, 2008). Allstate should use monetary and non-monetary compensation systems to reward their employees. Monetary compensations should be tied absolutely an only to performance to be effective. For example, a company may offer a bonus check to Amanda D. if she meets a performance objective. Money is a big motivator for inducing desired behavior and performance. Where and attractive pay is offered, an employees can be motivated in manner consistent with the attainment of high productivity and profitability ( Adenike, 2008). Non-monetary compensations is any benefit that doesn't involve tangible values (Adenike, 2008). For example, Amanda D. can be offered with a promotion. It also includes any social rewards such as flexible hours, job security, etc. Rewards system, whether it is monetary or non-monetary must have a value for employees. This is because if it has a value and it's meaningful to them, it will make them to put all efforts to achieve the goal. It must reward positive behavior and sanction negative. It must be satisfy individual needs. What's the purpose of giving a car to a non-driver? If fulfilled, all of these will help Allstate to attract, retain and maintain a highly motivated and committed workforce as well as it will help Allstate to achieve its diversity goals.
4. If you were an Allstate employee, discuss whether or not you would be motivated by the Diversity Index and QLMS. Provide a detailed explanation. If I was an Allstate employee, I would definitely be motivated by their Diversity Index and QLMS. This is because I think that embracing diversity in today's world is crucial. Thanks to modern technology, world became global village where people from different corners of the world interact on daily basis. Allstate celebrate all differences, backgrounds and thinking styles. Working there, I would feel like a valuable employee whose opinion and thinking are respected and evaluated. This is really important to me because I am coming from a really diverse country where, unfortunately personal differences are not celebrated as a positive characteristic but more used as a means to divide people and manipulate with them. Allstate received more than 75 awards over past five years acknowledging its diverse culture. Working for company of that reputation would be motivation itself.

REFERENCES
Adenike, A. A.( 2009). Tools and techniques for designing effective compensation systems. In Encyclopedia of Human Resources Information Systems. Retrieved from http://www.credoreference.com.libdatab.strayer.edu/entry/igihris/tools_and_techniques_for_designing_effective_compensation_systems
Allstate (2008). Allstate: One company for all. Retrieved on October 21, 2011 from http://www.allstate.cm/Allstate/content/refresh-attachments/diversity_brochure.pdf
Allstate (2011). Workforce diversity. Retrieved on October 21, 2011 from http://www.allstate.com/diversity/workplace.aspx
Fay, D. ( 2008). Team diversity. In International Encyclopedia of Organization Studies. Retrieved on October 20, 2011 from http://www.credoreference.com.libdatab.strayer.edu/entry/sageorgstud/team_diversity
Hellriegel, D., Slocum, J.W. Jr. (2011). Organizational behavior: 2011 custom edition (13th ed.). Mason, OH: South-Western Cengage Learning.
Kayes, D. C., Raelin, J. (2008). In International Encyclopedia of Organization Studies. Retrieved on October 20, 2011 from http://www.credoreference.com.libdatab.strayer.edu/entry/sageorgstud/goal_setting_theory…...

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