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Allstate Insurance

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Allstate Insurance Company
SM Jones
BUS 520
July 19, 2011
Strayer University

Abstract

Allstate was founded in 1931 as part of Sears, Roebuck & CO., and became publicity traded company in 1993 on June 30, 1995, it became a totally independent company after sears diversed its remaining shares to Sears stockholders. Based in Northbrook, Illinois, Allstate is the nations largest publically held personal lines insurer and one of the nations leading insurers in urban areas. Allstate has found that through diversity they have improved their performance in today’s competitive environment. Allstate defines inclusive diversity as the collective mixture of all of the differences in the workplace, marketplace and community (www.allstatenewsroom.com).

Allstate has four specific steps that combines workplace differences that will impact business results; succession programming, development, measurement accountability and reward. The first step is succession programming identifies and develops key position for each employee. Second step is development, management gives each employee an assessment of their current jobs skills and a road map for developing the critical skills needed to advance in the company. Twice a year employees are given the diversity index survey and a feedback process called Quarterly Leadership Measurement System (QLMS), this is the third step measurement. Accountability and reward is the fourth step which links the accountability with rewards.

Allstate Insurance Company

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

Goals are future outcomes (results) that individuals and group desire and strive to achieve. Goal setting is the process of specifying desired outcomes toward which individuals, teams, department, and organizations will strive and is intended to increase organizational efficiency and effective ( Hellriegel and Slocum 2011, pg 192).
Allstate provides employees with guidance to succeed and advance in the company. The employees are gives tools and resources to succeed and advance in their careers. Diversity is the companies’ strategy for influencing differences in order to create a competitive advantage. Using the four steps, Succession programming, development, measurement, and accountability and reward.
Allstate has a number of programs in place to help employee maintain a balance between work and personal life. For example the headquarters office has an onsite childcare center that offers parents discount programs and flexible work arrangements for its employees. This in my opinion is a great example of a company understanding their employee’s personal and professional needs. The employee will be willing to set new goals and achieve new challenges to ensure that the company continues to grow. The employees feel that they are a part of the company’s success and not just an employee.

Discuss the competitive advantage Allstate has from the development of Diversity Index.

Allstate brings diverse perspectives to the workforce, this helps to better serve diverse costumers. Diversity is Allstates strategy for influencing differences to create a competitive advantage When employees are in a diverse environment and the primary focus is goal setting and the goals have been explained to them with the opportunity to learn and grow with challenging work, competitive salary and interesting co-workers this influences employee’s satisfaction and competitiveness. My providing the tools, resources, and opportunities to succeed the employee can and will perform at their highest potential. The environment in which the employee works reflects the experiences, backgrounds and communities that they serve.

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

I recommend that Allstate use profit-sharing, flexible benefit and skill-based programs. Profit-sharing programs provide employees with a portion of the company’s earnings. Allstate has to provide up-to-date information that allows employees to see how well they are performing against their goals. Tie the program to the company’s strategies and give the program time to succeed. Flexible Benefit Programs allows employees to choose the benefits they want, rather than having management choose for them (Hellriegel/Slocum, 2011). This gives employees an opportunity to make decisions regarding their benefits that best fit or suits their needs. Skill-Based Pay Programs are based on the number and level of job-related skills that an employee has learned and can perform (Hellriegel/Slocum, 2011). All three reward programs will motivate employees to want to perform at their highest level. Because employee’s security, esteem and self actualization needs are being met they will go beyond the call of duty to insure that the company’s goals are achieved. The employee has now become a partner with the company that they work for and not just an employee. As Allstate continues to invest in their employee’s intern the customers that Allstate serve will also benefit.

If you were an Allstate employee, discuss whether or not you would be motivated by the Diversity Index and QLMS. Provide detailed explanation. If I were an Allstate employee I would be motivated by the Diversity Index and QLMS.
The Diversity Index survey will give me an opportunity as the employee to give feedback to Allstate on the environment in which I work. Management would be able to understand if the goals that they have set for my position are working and what challenges that I may be having in the work environment. This would also insure that the management style is consistent with the overall goal of the department and company. The Diversity Index survey will help management solve programs and create new action programs to solve problems that would take a look at the culture differences that may play a part in perceptions and , improve my work processes. Because diversity survey is done twice a year, this will ensure that all needs have been met and if there are other challenges that were not met, this will give management an opportunity to correct.

References

[ (Hellriegel/Slocum, Organizational Behavior, 2011) ] [ (www.allstatenewsroom.com) ]

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