Allstate Insurance Company
Kristie A. Hunter
Leadership and Organizational Behavior-BUS 520
There is a brand name in the world of insurance companies by the name of Allstate Insurance Company. Allstate was founded in 1931 as part of Sears, Roebuck & Co.
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.
Allstate is doing very well in there efforts of their goal setting program. There are five conditions for effective goal setting that are listed in the textbook. The first condition, discuss whether or not the employee has knowledge and ability to attain the goal that has been set. I believe Allstate has this condition down pack. Allstate has an assessment of current job skills, a roadmap for developing skills for advancement, educational training, coaching, and mentoring. This helps the employee to have a roadmap for developing the critical skills necessary for advancement. This condition deals with the challenge, it provides goal difficulty, goal clarity, and self efficacy.
The second condition is the employee must commit to the goal especially when the goal is difficult. Allstate has made it easy for there employee to stay focused on there goal by having on site childcare. The childcare centers offer parent discounts. Other services Allstate offers are dry cleaning, and oil changes. These are great resources for the employees. These services take a load off the employee when they are trying to work. If you are able to go down to the childcare center to check on your child on your break it allows you to work when you are work. These programs help the employee balance work and personal life. This creates a positive direction for the employee to head in (Hellriegel & Slocum, 2011, pg 216).
The third condition is that the employee needs feedback on progress toward the goal. Allstate has set in play twice a year they do a survey called the Diversity index. This survey ask a host of questions like, does our company deliver quality service to customers regardless of race, age, gender, and religion. Are you treated with respect and dignity at work Are you able to put your input with your immediate supervisor Is there diversity in the input put in your team Do you observe insensitive behavior at work, inappropriateness about gender, age, race, or religion Are all employees free to offer there opinion I think this is great for Allstate to offer this survey, the employee can fill it out secretly and the results will not harm there career. This survey also helps the company to understand how the employees feel about all aspects of their working condition (Hellriegel & Slocum, 2011 pg 216).
The fourth goal is to break down complex tasks into sub goals. When tasks are broken into sub goals the employee can achieve these goals in order to get to the big goal. When reading I didn??™t see where Allstate broke their big goals into sub goals. I would think that because Allstate has so many programs set up to help their employees succeed that have there goals set up for an employee to fulfill there duty. This goal ties into the employee developing tools needed to be a valuable asset to the company. If the employee meets their goal, then the company meets its total goal. Allstate uses diversity as a way to meet there goals. ???Diversity is Allstate??™s strategy for leveraging differences in order to create a competitive advantage??? (Hellriegel & Slocum, 2011, pg 215).
The fifth goal is do the employees have the correct resources to attain the goal At Allstate the employees are provided with all of the resources that they will need to be successful. As discussed in the first goal, Allstate equips their employees with all of the correct resources. Allstate goes as far as to have postal and catering services for their employees to use, this helps employees not to have to worry about what they or going to eat or trying to make it to the post office before it closes.
2. Discuss the competitive advantage Allstate has from the development of the Diversity index. Allstate uses diversity as a way to meet there goals. ???Diversity is Allstate??™s strategy for leveraging differences in order to create a competitive advantage.??? The strategy that Allstate uses ???has two major points: one internally focused and the other externally focused??? (Hellriegel & Slocum, 2011, pg 215). Internal Diversity means to unlock potential in the employees, when provided with education, resources, and opportunities. External focus means to make sure the workforce and the markets match each other. Allstate views diversity as a process instead of a goal of which the company uses in its daily life. Allstate has an advantage in diversity because it is used as a way of life in there everyday workforce. Allstate focuses on diversity awareness through education. ???A diverse slate of candidates is identified and developed for each key position??? (Hellriegel & Slocum, 2011, pg 215). Allstate can hire more than other companies because they have a more diverse population. The diverse population helps the company to succeed.
3. Recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals.
Reward systems are created in order to enhance high job performance in an employee. Skilled base pay could be a way to meet diversity goals. If employees had to do so many claims to receive a reward, I??™m sure they would work hard for a worthy reward. Employee??™s like to have rewards, another reward would be based on there volume meaning if you have sold the most premiums you might receive a trip to Hawaii. This also would mean, were your courteous to the clients, did you meet your quota, were you civil to other employees. Since Allstate has two strategies of diversity that they use, I think they should have a reward system that would intertwine the two. The employees are equipped with resources, and tools to succeed which gives them internal focus. Maybe there should have secret shoppers to call in and ask questions about the product to each sales agent. The person that answers the most questions correctly will be given a reward. This internally would make employees want to know more about there product, so if the company ever reviewed there knowledge again they would be prepared. The external focus means to make certain the workforce matches the experience of the market it serves. Externally a reward could be based on the productivity of agents, how they treat others. There should be a grand prize for the person that is diverse in all of the goals. Maybe there should be extra point for an employee that speaks more than one language this will help the company be more diverse. Many employees would want to learn a second language especially if the company would offer to pay for it. The system that Allstate uses is a good system as far as diversity is concerned.
4. 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 worked at Allstate I would be motivated by the diversity Index and the OLMS. I think the diversity Index is a wonderful tool. The index would be a way for me to express my opinion, everyone wants to express there opinion about there job. If there was something I didn??™t like such as how we treated customers. For example, if there were several customers that called in and had accents that employees could not understand and they were rude and short with them, I would be able to display my concerns in the index. This would be a huge issue to me because customers are what make our business proceed. No one has a right to be rude or insensitive to a customer because they can not understand there speech, maybe they should listen carefully, ask the person to speak slower and be courteous. Another example could be if I felt like as a gay black man I was not being treated with respect by my coworkers or my immediate supervisor, I could express myself. The Diversity index and QLMS would also motivate me to treat others with respect and be aware of my surroundings at all times. The index helps employees to become more professional and accurate.
Hellriegel, D., Slocum, J.W., Jr. (2011). Organizational behavior: 2011 custom edition (13th ed.). Mason, OH: South-Western Cengage Learning.