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.

Setting effective goal is very important because it is the best way to achieve what we want in life in a successful, focused and decisive manner by taking the right actions in the shorter possible time. Allstate’s strategy success goals are mainly based on the diversity of the workers or the employee, their goal setting in this case was not about sales, it was mainly about the ways to maximize the advantages of diversity in order to maximize the sales. They are aware of how significant diversity is to achieve good results for the company because it has been incorporated into the corporate vision statement since 1969. Allstate has started training session for all their of employees in all departments for leadership positions and to make sure that all the employees are highly skilled and have a wide range of backgrounds. Recruiting at minority universities is a very effective method of recruitment to ensure a high diversity of employees, it always have shown very good results on the long term for the diversity of employees, with respectable level of education.

Allstate’s Employees benefit from a specific training necessary, leaving them ready for the next position up the ladder of advancement, which is the purpose behind their development program. After an extensive evaluation of their current skill level each individual receives a customized program for development of the key skill sets required for advancement within the corporation. This dedication to the education of employees shows the determination behind Allstate’s diversity program. 2. Discuss the competitive advantage Allstate has from the development of the Diversity Index.

Diversity index is a measurement tool which is used to capture and state the analysis the local members of a set consisting of various types of object, such as ecology, biodiversity, ecosystem, and demography. Diversity index discussed in the Allstate study case is about demography which measures the distribution of population of various demographic groups such as minorities and races. By asking specific question to their employees, management communicates the results of these surveys via its intranet and actively solicits feedback from them on creating action programs to solve problems and improve work processes. In fact, Allstate’s employee are enjoy from a organized diversity in order to able to use more resource, which will eventually result in a better work environment , more efficiency, and profits. Additionally, since Diversity Index is a component of the managers’ merit pay, this process creates significant incentives to the managers to work even harder than before. 3. Recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals.

First of all, I believe that Allstate had a very intelligent idea, which consists in linking compensation to the company’s diversity goals. Indeed, 25 percent of each manager’s merit pay is based on the Diversity Index and the QLMS, which highly contributes to the employees’ excellent performance. Secondly, Allstate helps its employees maintain a balanced life between work and home. Indeed, Allstate employees benefit from child-care center at their workplace or close by. This practice lead the employees to focus only on their job since they own the children are safe in a close by place. Moreover, by establishing the Diversity index process, employees are assessing the work environment which directly affects the management’s benefits. In other words, Allstate is maintaining a strict behavior stand due to the fact that managers need to have a sound communication with their diverse employees. In my opinion, Allstate company has came up with the best and realistic initiative to promote diversity among its employees, which makes it harder to for us to find new and better motivating ideas. However, I think Allstate would enhance its high-performance reward system by encourage employees to get involve in diversity and multicultural events in exchange of days and or bonus. Indeed, having to attend multicultural events would improve employee diversity awareness.

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.

Yes, I would be motivated by these practices and I believe that the Diversity Index and QLMS are very important for the high performance of the company. However, as Allstate’s employees might think, the diversity index process has its own limitation which can be related to ethical and moral issues. Indeed, Managers, subordinates or simply Allstate’s employees have the possibility to take advantage to this system in order to fake high results or a perfect work environment. From one side, managers can threaten their employees and use these surveys to improve their image. In fact, managers can force employees to hide any problem so they can save their energy. On the other side, employees can put pressure on their managers to work less by manipulating the surveys. In sum, I believe Diversity Index and QLMS are very important to the company; however, they need to be monitor.

References:

* DIVERSITY INDICES, retrieved from http://www.tiem.utk.edu/~mbeals/simpsonDI.html on 07/25/2011

* Model Theory of Goal Setting and Task Performance, retrieved from http://www.enterprise-pm.com/model-theory-of-goal-setting-and-task-performance on 07/27/2011