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Running Head: Allstate Insurance Company

Kenyada Boatwright Dr. John Dorociak Bus 520 Leadership and Organizational Behavior Allstate Insurance Company April 30, 2011

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Abstract This paper will explore the contents of the article that shows the competency of diversity within Allstate Insurance Company. Allstate has been able to keep up with their employees and allow diversity to help them grow and become more successful. Allstate realizes that in order to grow they would need each individual involved and be willing to embrace the diversity of the company. Although its a very competitive environment Allstate has been able to improve their performances and reach all their goals. In this context, Allstate managers view diversity not as a goal but as a process that is integrated into the daily life of the company (p.215).

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Allstate Insurance Company Using the model for goal setting, evaluate Allstates goal setting process to determine whether or not Allstate has an effective goal-setting program. The model for goal setting to evaluate Allstates goal setting process has determined how successful Allstate could really be and also has shown ways of improvement. According to Hellriegel & Slocum (2011) states that goal setting is the process of specifying desired outcomes toward which individuals, teams, departments, and organizations will strive and is intended to increase organizational efficiency and effectiveness (p.192). The model for goal setting has three aspects involved. The first is the challenge which also breaks down to goal difficulty, goal clarity, and self-efficacy. The challenge within Allstate is trying to take the workforce and bringing them together in a more powerful way so that it can impact business results. The second is the moderators. The moderators in my opinion are the most important in the goal setting with Allstate. They increase or decrease moderators, the strength between challenge and the mediators change. The third is the mediators which also break down into direction, effort, persistence, and task strategy. The mediators have been able to defuse any situation between employees before they become a bigger issue. Each goal setting has played a major role in Allstates success. Discuss the competitive advantage Allstate has from the development of the Diversity Index. The competitive advantage Allstate has from the development of the Diversity Index is huge. With the Diversity Index it allows Allstate to get questions answered in an indirect way from their employees. The diversity index is a survey that measures the true feelings of the employees. Management communicates the results of this survey via its intranet and actively

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solicits feedback from employees on creating action programs to solve problems and improve work processes (p. 216). With this survey it gives the owners a snapshot of what employees want or could even be possibly feeling. Surveys such as these are very beneficial for companies as large as Allstate. So many times companies like these can lose focus on their employees and forget that they are the reasons to their much success. Allstate knows what they have to do in order to continue to grow their success. The diversity index is a great way to have a huge advantage over any other competitors. Recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals. The types of high-performance reward I would recommend for Allstate would be the profit-sharing program and flexible benefit program. With Allstate being a huge company with so many different employees having different type of reward systems would be beneficial for them. Seeing that Allstate have over 36,000 employees one reward system would not be a good fit for everyone, each employee have different needs. Nevertheless Allstate knows that each employee has different needs and they are willing to make each employee happy. The first program I would recommend would be the profit-sharing program. Profit-sharing programs provide employees with a portion of the companys earnings (p.207). I would suggest this program because of big the company is and how much success that they are continuing to earn due to the employees. If the employees knew how much of an asset they are to the company and they were able to get a percentage of the funds that are made they would be more aggressive with growing the company. The other program I would suggest is the flexible benefit program. Flexible benefit programs allow employees to choose the benefits they want, rather than

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management choose for them (p. 209). This particular program is tailored to fit individual needs. Allstate is a very diverse company that would need a diverse selection of reward programs. I suggested two programs that would be beneficial for any individual. Each one the programs that I suggested would also help push the employee to be the best that they can be. Even though each program is very different from each other they can help improve the employees work ethics. Having a different type of reward program for employees can be very beneficial at the end of the day. 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 worked for Allstate I would be very motivated by the Diversity Index and QLMS. Working for Allstate would motivate me first hand because of their diversity and willingness to work with you. Allstate not only want to see you succeed they want you to grow with the company and also learn ways of diversity. The Diversity Index and QLMS is only put in place to help you become more open on your true feelings rather than hold them in about the company. The surveys help you to be able to express different things without you feeling as though you are hurting someones feelings. I am a very vocal person so even without the surveys I would be able to speak my mind. However everyone is not as open as I am when it comes to speaking things that could put them in a position where someone could be upset with what they have to say. So for people like that the survey is a good way for them to feel comfortable saying however they may feel. The Diversity Index could only help me and the company with both of our growth. The Diversity Index and QLMS would motivate me to strive for a better me in more than one way. Conclusion

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Allstate has been very successful and will continue to be successful due to their diversity. Any company that is willing to add diversity to their company they are taking a huge risk but with Allstate things work out perfectly for them. Allstate is willing to help and assist their employees with anything they may need. Which also make them stick out above any other companies out there. If Allstate continue going with the flow of being a great company for their employees they will continue to be successful.

Reference

Hellriegel, D. & Slocum, J.W., Jr. (2011). Organizational behavior: 2011 customs edition (13th ed.). Mason, OH: South-Western Cengage Learning.