Running head: BUS520 Assign 2 Allstate Insurance Company

Allstate Insurance Company
Myrna L. Hunt-Young

In Partial fulfillment of BUS520
Professor Danette O’Neal
04/28/2011

Abstract
This paper will discuss the strategy that the Allstate Insurance Company, located in Northbrook, Illinois uses for motivating their employees. There will be a discussion of the advantage that Allstate has by using the Diversity Index and Quality Leadership Measurement System (QLMS) program. Furthermore, there will be list of options that Allstate could use to motivate their employees to meet the goals set by the company. Lastly, I will discuss whether or not Allstate’s Diversity Index and QLMS program would motivate me to work for the company.

Background The human resource team at Allstate started an affirmative action program during the late 1960’s. This program was considered innovative. The program consisted of 4 steps: Succession, Programming, Development, Measurement, and Accountability and Reward. Each step takes into affect the employee, managers, and the company. Allstate is an Insurance company located in Northbrook Illinois. This is a suburb located north of Chicago, Illinois.
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 documented in the book Organizational Ethics, by Hellriegel and Slocum (2010, page 194), “Goal Setting is the process of specifying desired outcomes toward which individual, team, departments, and organizations will strive and is intended to increase organizational efficiency and effectiveness.” Goal setting is defined with Allstate’s step number three, this steps is called measurement. By presenting a measurement the employee is able to determine how to achieve the goal defined. An employee working for Allstate is set up for success because Allstate is committed to educating and training their employees on the Diversity Index and (QLMS) program. The company also surveys the employees twice a year on the goals. This allows Allstate to determine if the employee understands the company goals. Along with determining if the employee is meeting company’s goals. This program has proven to be effective for Allstate, as the performance continues to meet their goals. Allstate has the most diverse employment of women and minorities. The program allows Allstate to continually address the needs of the employees.
Discuss the competitive advantage Allstate has from the development of the Diversity Index. The diversity index strategy has a competitive advantage because it allows Allstate to have impact both externally and internally. The external program assures Allstate is matching the workforce equivalent with the experiences, environments, and aware of the markets it serves. The internal program is focused on “unlocking the potential for excellence in all workers by providing them with the tools, resources, and opportunities to succeed.” Organizational Ethics, by Hellriegel and Slocum (2010, page 215). Allstate invests in their employees by the education and training of the diversity index. This affords Allstate to have the best employees working for them. By recruiting from diverse colleges and universities Allstate keeps their company evolving
Recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals. Employees would expect a yearly merit increase for the job that they perform. So, giving a high performance reward would push their employees to perform more consistently. Allstate could put in place the following high performance rewards. The rewards would be for individuals and departments. The rewards would consist of weekly, monthly, and yearly. First, have an on the spot reward; the company could give the employee an informal reward for their hard work weekly. Second, the company would have monthly rewards; the employee(s) that meet the goals for the month would get rewarded with get a day off. Third, the company would have yearly rewards: the individual department would nominate the employee that met the most goals and give them a monetary reward(s); managers that have the most employees meeting the goals would have profit-sharing.
If you were an Allstate employee, discuss whether or not you would be motivated by the Diversity Index and QLMS. Provide a detailed explanation. The Diversity Index and QLMS program would motivate me if I were an Allstate employee. Allstate sets clear goals for their employees for the program. They also ensure that the employee understands the goals and works with them to achieve the goals set. Allstate provides feedback and continually is working to improve their employees. Furthermore, all of Allstate’s upper management believes in the program.
Summary
The Allstate Insurance Company has set up goals to assist their employees to performing better in the workforce. The Diversity Index has allowed Allstate to be competitive and improve their performance. The company could use on the spot, monthly, and yearly high performance reward system. I would be motivated the by the Diversity Index and QLMS program.

References
Hellriegel & Slocum, Jr., D, J.W, Jr. (2010). Organization behavior, 13th edition South-Western Centrage Learning
Lockwood, R, N. (2005, June 01). Workplace diversity: leveraging the power of difference for competitive advantage. HR Magazine, (6), A1, Retrieved from http://elibrary.bigchalk.com.