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ALLSTATE INSURANCE COMPANY

Professor Jean-Francois Orsini

Business 520: Leadership and Organizational Behavior

Vonzetta Nicole Douglas

31 October 2010
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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 the process of setting targets for accomplishment and has been used by

individuals and groups to measure performance and get results. In the business world,

goals commonly take the form of quotas, work norms, objectives, deadlines and budgets.

Both individuals and groups use goal-setting to outline what, how, and when to complete

tasks or to achieve objectives. Besides providing a target against which performance or

results may be measured, goal setting serves as a tool to motivate workers. Goal setting

for groups is part of the planning process in which strategies are developed to achieve

specific organizational goals.

By the late 1900’s goal setting had trickled down to all levels of the workforce. More

and more companies established quantifiable goals for their employees during this period

often by creating quotas or targets for their employees, such as production or sales

quota’s. Joan Crockett, senior vice president of human resources at Allstate believes that

the way to get people’s attention is to set goals and hold leaders accountable for meeting

them. While a growing number of companies treats diversity as a business issue, Allstate

stands out as a company that attempt to measure the impact of diversity on corporate

performance.

Performance is high in Allstate because of its diversity strategy. Diversity strategy is

considered one of the company’s most competitive weapon. Their strategy has two main

points according to James Devries, the senior vice president of human resources. The

internal diversity focus is about unlocking the potential for all workers by providing them
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the tools, resources, and opportunities to succeed. They challenge themselves by driving

to achieve a greater level of customer satisfaction by taking an intergrated approach to

diversity in the workplace market (Wah). The external focus makes sure that the

workforce matches the experience, backgrounds and sensitivities of the market that it

serves. Employees are rewarded by attaining high levels of performance which is

measured by their Diversity Index and Quarterly Leadership Measurement Survey.

Twenty-five percent of each manager merit pay is based on these surveys. Allstate

employees set goals that are achievable which is measured by their satisfaction rate. They

have employed over 36,000 employees. The employees continue to reach their goals by

receiving assessments of their job skills and positive back that is needed to develop the

skills that are needed for career advancement.

DISCUSS THE COMPETITIVE ADVANTAGE ALLSTATE HAS FROM THE

DEVELOPMENT OF THE DIVERSITY INDEX.

Corporate diversity training programs aims are to help employees understand personal

differences and how these differences influence our interactions, moral and work

performance. Understanding diversity includes more than race and ethnicity; it includes

gender, sexual orientation, age and religion.

Allstate diversity strategy is aimed at retaining the best employees. That is why the

company builds diversity into its performance model (Wah). An employee can count on

being treated with respect and dignity and in turn the company expects the employees to

develop their skills to out perform the competition.

According to Adah Chung, trends in diversity training programs change with the

changing population and needs of the workforce. You need to understand the needs of an
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organization to provide the best diversity program that will help employees work

together.

RECOMMEND THE TYPES OF HIGH-PERFORMANCE REWARD SYSTEM

ALLSTATE SHOULD USE TO MOTIVATE ITS EMPLOYEES TO REACH
DIVERSITY GOALS.

Skilled based pay programs would be a great asset and reward program for Allstate. It

would be a good decision to pay employees based on their value in the labor market.

Employees with highly developed sills and those that develop other skills could be

valuable assets to the organization. Allstate gives its employees the tools, resources and

opportunities that they need to succeed. The employees appear to be very motivated to

work for the company with the reviews that are given by its diversity index. By adding

new skills should eliminate the problem of individuals topping out.

IF YOU WERE AN ALLSTATE EMPLOYEE, DISCUSS WHETHER OR NOT YOU

WOULD BE MOTIVATED BY THE DIVERSITY INDEX AND QLMS. PROVIDE A
DETAILED EXPLANATION.

The employee feedback system that measures employee perceptions known as the

Diversity index has been a great tool that Allstate uses. As a result, Allstate has been a

recognized leader in workplace diversity. This is the result of a continuing commitment

to ensuring that their workforce reflects the diverse markets that they serve. Of the nearly

37,000 Allstate employees employed in 2007: Nearly 60% are women; more than 30%

are minorities; more than 40% of officers and managers are women; more than 20% of

officers and managers are from one of five minority groups. In addition: 16.7% of

Allstate agency owners are female and 23.3% of Allstate agency owners are minorities.

So I would be very motivated to work for Allstate because of their Diversity Index and

QLMS. Allstate is very focused on the diversity of its company. They are looking out for
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the well being of the community and looking towards helping minorities in the

workforce. If Allstate can go beyond generalizations and understand the individual day-

to-day dynamics of race in the workplace, it will continue to achieve its diversity and

business goals (Caudron 1998). The diversity program works so well for Allstate

employees because they evaluate their leaders in terms of their skill in building a

supportive work environment for all employees. Everyone’s diversity skills are assessed

through the extensive quarterly survey that is conducted where employees are asked for

anonymous feedback on how the company is getting along with its customers and

employees. The Quarterly Leadership Measurement System survey measures leadership

effectiveness in managing the diversity in the company. These surveys are conducted at

least twice a year. Unlike the diversity index, the QLMS measures employees perception

of how well the company is achieving aspirations for its customers, shareholders and

employees. The diversity index and the QLMS measures the effectiveness of Allstates’

diversity efforts (Babcock 2009). They are both compared to identify any correlation

between them. The better the employees perceive their managers effort to produce a

diverse work environment, the more satisfied they are which entail them to greater

customer satisfaction and retention. I would be very motivated by the Diversity Index and

QLMS because the company takes the feedback of the employees to help build a greater

company. When you are running a company the more feedback that you get from the

employees, the greater chance you have of creating a great company.

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REFERENCES

Babcock, Pamela (2009). Diversity Accountability Requires More Than Numbers.

Retrieved October 29, 2010 from http://www.shrm.org/hrdisciplines/Diversity/
Articles/pages/more than numbers

Caudron, S. (1998). Diversity Watch. Black Enterprise, 28(7),141. Retrieved 24 from

October 2010 from Academic Search Premier database.

Chung, Adah. Diversity Education and Training News and Trends. Retrieved October 26,
2010 from http://www.business.com

Hellrigel, Don and John W. Slocum Jr (2010). Organizational Behavior (13th edition).
South-Western Cengage Learning

Perry, Phillip (2007). High Performance-New Compensation Practices Motivate Workers

Fatten Profits. AQUA Magazine. Retrieved October 24, 2010 from http://www.
Compensation resources.com/pfv.php

Wah, Louisa (1999). Diversity at Allstate: A Competitive Weapon. Management Review.

Retrieved October 29, 2010 from http://www.wahansa.com/portfolio/diversity.html