The goal-setting model has four aspects: directing attention, regulating effort, increasing persistence, and fostering strategies and action programs. The theory behind this model is that it can be used as a motivational tool that allows people to compare their current performance levels with the performance levels required to attain a certain goal. Allstate has determined that their goal is to be as diverse as possible in order to use it as a weapon against competition. They have stated that their diversity goals are not politically or legally motivated, but instead are essential in “leveraging differences in order to create a competitive advantage.” This strategy is broken down into two major points, one internally focused and one externally focused. The internal focus is dedicated to “unlocking the potential for excellence in all workers by providing them with the tools, resources, and opportunities to succeed.” This means that the company is willing to use whatever they can to ensure that their employees are performing at the highest possible levels and may include special programs to help with personal issues (such as extended leave or back-up childcare) or performance issues (such as training sessions and workshops for employees that may need that extra lesson on how to). Their external focus is about making sure that their employee structure reflects the experiences, backgrounds, and sensitivities of the markets that they serve. This is very important for cultural diversity reasons. People feel most comfortable with people that they can relate to, and are more likely to patronize a company that offers a range of cultures, ethnicities, and backgrounds. In this aspect, Allstate uses diversity as an integral part of daily company life instead of some elusive goal to achieve. Based on this model, I believe that Allstate has a very effective goal-setting program. They focus on ensuring that the employee is satisfied with their job expectations and work environment. This fosters an atmosphere in which employees can perform at their peak levels and allows the company to obtain maximum profits. Twice a year, Allstate evaluates the diversity of their workforce though a survey that they call the Diversity Index. The survey consists of four questions that inquire about the quality of service delivered to customers and the extent that employees are treated with respect and dignity regardless of their ethnicity, gender, age, etc., as well as questions about insensitivity in the workplace (such as inappropriate comments or jokes based on race, gender, etc.) and whether employees feel they work in a trusting environment where they are allowed to offer different opinions. The results of this survey are distributed via the company’s intranet and actively solicit employee feedback on developing programs to solve problems and improve work levels. This is a very effective way of measuring the levels of comfort and satisfaction employees have with their job. By using the Diversity Index, Allstate shows their employees that they care what they think and that they are willing to take action to ensure that their employees are happy with their jobs and are as productive as possible. Many companies treat diversity as a business issue, a sort of social conscience program that ensures that they employ just enough people from diverse backgrounds to be legally and politically correct. These types of affirmative action programs have only recently begun to be recognized as different from diversity initiatives and the idea that diversity can be used as a business strategy is still a foreign concept to many. Allstate was one of the first companies to employ this theory and has since been one of the leaders in the number of progressive companies that use diversity as a strategic method to increase customer and employee satisfaction and sales. There are many types of high-powered reward systems. The first is through informal rewards, which come as a result of interactions between people. In a time where raises and promotions are becoming very rare, this type of reward is gaining in popularity because it does not require a monetary resource. The second type of rewards program is through profit-sharing, which provides employees with a portion of the company’s earnings. This type of program is not necessarily one of the most popular because many employees feel regardless of their productivity levels, their impact on the organization’s overall profitability is minimal. Next, there are skill-based pay programs. Skill-based programs reward employees based on the number and level of job-related skills that an employee has learned. Employees are paid based on the number of different skills they can perform, but there is a downside to this, called “topping out.” Topping out happens when an employee has attained the highest level of achievement possible and can go no further. A company that uses this type of reward system has to then develop a new method of rewarding employees, which takes them back to the original decision of what type of reward system to use. Finally, there are flexible benefit programs, which allow employees to choose the benefits that they want instead of the employer choosing for them. The reasoning behind this type of program is that the employee can customize their benefit plan to fit their needs. For instance, some employees might take all of their benefits in cash. Others might choose to add or increase insurance policies, obtain child or adult daycare services, or to use their benefits towards retirement programs. Based on these programs and their characteristics, I would recommend that Allstate use a combination of informal rewards and flexible benefit programs. Most people have an innate desire to be appreciated, and something as simple as a note thanking an employee for their hard work and dedication can boost morale and increase job satisfaction. This type of reward system also gives employees the chance to recognize the accomplishments of other employees and commend them for it. In addition, because Allstate’s employees are from so many different cultural backgrounds, it is a given that their values will be different. Some employees may value being able to take additional time off during a holiday versus a tangible, non-monetary bonus such as a turkey or ham. This falls in line with flexible benefit plans. Employees are able to tailor their benefits to meet their financial and lifestyle needs. For instance, an older employee may choose to invest their benefits in a retirement program, whereas a younger employee may be more inclined to take a cash reward. A family-oriented employee may be looking for extensive benefit options, while a single employee may choose to only go with the minimum. Again, because of the diversity of its employees, a company like Allstate would benefit by offering its employees a multitude of options to receive their rewards. If I were an Allstate employee, I believe I would be very motivated by the Diversity Index and QLMS. The Diversity Index shows that the company cares very much about how their employees feel about the company and the quality of the work environment, and QLMS is their way of sharing the information obtained with the entire company in an effort to solve any problems and improve the work process. The fact that 25% of each manager’s merit pay is based on the Diversity Index and QLMS is also a bonus. It sends the message that well-management of people is highly important and ensures that managers will work hard to make sure that their subordinates are satisfied and productive.
References
Allstate Diversity. Retrieved October 25, 2011 from the website http://www.allstate.com/careers/diversity.aspx
Berkowitz, Melanie. Diversity Spotlight: Allstate. Retrieved October 25, 2011 from the website http://hiring.monster.com/hr/hr-best-practices/workforce-management/workplace-diversity/allstate-diversity-case-study.aspx
Hellriegel, D., & Slocum, J. W, Jr. (2011, 2009). Organizational behavior: 2011 custom edition (13th ed.). Mason, OH: South-Western
Wah, Louisa. Diversity at Allstate: A Competitive Weapon. Retrieved October 25, 2011 from the website http://www.wahansa.com/portfolio/diversity.html.