Introduction Allstate’s culture is based on caring, which is the core of their relationship to its customers, employees and agents. They provide its employees with a work environment that is fast-past, challenging, and collaborative. The goal is to give employees work that is challenging but also interesting and meaningful. They also reward their employees’ efforts based on a pay for performance approach (Allstate Culture, 2011).

Question #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 simply the process of establishing specific objectives which employees, teams, departments, and organizations will strive to meet to help the organization as a whole be efficient and successful; Allstate’s diversity strategy is to bring together employee differences in order to create a competitive advantage. Allstate has taken the following four steps in order to take their workforce of differences and bring them together in a more powerful way so that it can impact business results (Hellriegel & Slocum, 2011). Those steps are succession programming, development, measurement, accountability and reward. Allstate uses succession programming to track and measure the key components of career development and opportunities for all of its employees. By do this they want to continue to run a company that is diverse at all levels. Allstate has a development process for all employees where they are assessed in their current job skills and provided with an outline for their continued development of the skills they need in order to advance. Allstate conducts a survey every two years call the Diversity Index, which is part of a larger employee survey process called Quarterly Leadership Measurement System (QLMS) (Hellriegel & Slocum, 2011). The intent with the survey is to obtain detailed feedback from their employees to help address problems or improve work processes. Allstate also promotes accountability by linking compensation to the company’s diversity goals. They believe that this helps motivate employees to do there best. I believe that Allstate is successful in its goal setting methods, they are focused on individual learning and development training through their development step which tracks and measures employee skill sets. Allstate also asks for employee feedback with their Diversity Index survey. Allstate’s internal strategy focuses on “unlocking the potential for excellence in all workers by providing them the tools, resources, and opportunities to succeed” (Hellriegel & Slocum, 2011).

Question #2: Discuss the competitive advantage Allstate has from the development of the Diversity Index. Allstate makes positive use of the diversity in their workplace as well as with their customer base, in turn, increase their competitive edge (Wah, 1999). Allstate believes that by conducting their diversity index with employees every two years helps increase sales and retention. The diversity index survey allows employees to answer questions like “To what extent are you treated with respect and dignity?” and “To what extent does management listen to everyone’s opinion?” The results are then used to help better performance where needed as well as their business processes. This process helps keep employees motivated to continue to work hard which leads to greater customer satisfaction and sales retention. They also focus this same strategy on its customer base leading to more customers renewing their insurance policies with Allstate. Question #3: Recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals. I would recommend the skill-based pay program to Allstate to use to motivate its employees. Skill-based pay programs are based on a the number and level of job related skills an employee as learned (Hellriegel & Slocum, 2011). Basically, the skill-based pay program rewards employees for the skills they have mastered. This performance reward program focuses on the individual employee. While there are limitations to this program such as employees topping out on the skills they have performed, meaning there are not any more skills for them to learn. Another limitation is that it can be costly because there is a need to increase the training efforts. However, with Allstate’s step two in its diversity program for measurement, employees are assessed on their current job skills. The assessment is then used to development a plan for the employee that will guide them in the skills needed for advancement. Allstate already offers education programs to its employees so I believe there would be little expense with the implementation of a skill-based pay program.

Question #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 were an employee of Allstate, I would be motivated by the Diversity Index and the QLMS. One of the biggest reasons would be because it would allow me to voice my concerns as well as any positive comments I had about the job and the company as a whole. Allstate is conscious about how they treat their employees. The Diversity Index and QLMS provide employees with opportunities to share their thoughts and opinions, it also helps provide a pleasant work environment for all employees regardless of there ethnic origin. However, I may also be concerned that Alllstate focuses so much on diversity in the workplace that they might over look a non-minority employee for a promotion because they want to be sure to give the minority employees the opportunity. I don’t know of way to measure this type of thing but would want to know the management looks at all the qualities of an individual regardless of race before hiring or promoting anyone. From what I have read in our text book as well as on the Allstate website, they appear to be a company that creates and promotes a happy workplace. They offer a cafeteria plan of benefits which provides flexibility to all employees. Allstate prides themselves on being a great place to work which is full of advanced technology, innovative products and unlimited opportunities (Working at Allstate, 2011). REFERENCES
Allstate Culture. (2011). Retrieved from Allstate: http://www.allstate.com/careers/culture.aspx

Hellriegel, D., & Slocum, J. W. (2011). In Organizational Behavior. South-Western, Cengage Learning.

Wah, L. (1999). Diversity at Allstate: A Competitive Weapon. Retrieved from Management Review: http://www.wahansa.com/portfolio/diversity.html

Working at Allstate. (2011). Retrieved from Allstate: http://www.allstate.com/careers/working-at-allstate.aspx