Free Custom «Allstate Insurance Company» Essay Paper

The goal setting process in Allstate is geared towards unleashing the company's competitive strategy by optimally utilizing the diversity of the employees (Hellriegel and Slocum, 2007 pg 216). The fact that differences that are brought about by norms in culture has an impact in the personal norms values mores and product consumption behavior can be a useful tool to market its product in a diverse market. As a result if this fact, the diversity goal comes in handy to help the company in realizing that its services are packaged in a manner that optimally meets the unique needs of the consumers under their specific cultural context. The goal setting process at Allstate is not just a process but one that is strictly followed and observed. Their main goal which is diversity competency is set via several processes which are clearly outlined below.

Succession programming forms the very first step in diversity competency. The management information system of the company has the capacity to carry out the selection of its candidates from a background that is diverse. At each level that needs to be filled by a new recruit, several factors that play a role in career development are considered to ascertain that a work force that is hired reflects diversity. The company's diversity respects the differences in culture as well as gender differences. The second step utilized by the company in its journeys towards diversity competency is the development. The company has an employee-development-assessment program where critical skills of the employees are evaluated, their development noted and lastly the relevant skills that are needed for development; the employees are coached to achieve the needed development (Hellriegel and Slocum, 2007 pg 2116-217).

 

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Measuring the career development of the employee to note career comes in as the next step. The company does appraise the employee's development every twice in a year. It is during this period that cultural diversity issues as well as gender diversity issues are critically examined. Also, an examination of whether the employees are being offered the best environment by their managers as far as their cultural diversity is concerned is carried out. In addition to these, the appraisal also does seek to find out whether their cultural background that is diverse is being utilized in the organization for the purposes of development. Lastly, the goal of diversity competency is realized through accountability and rewards. Managers are rewarded, up to 25% of their pay based on the diversity merit which is believed to help the workers focus their efforts towards the same initiative.

The Competitive Advantage Allstate Has From Developing the Diversity Index

Development of the diversity index accrues several competitive advantages to Allstate insurance Company. First of all, the diversity index attracts a positive appeal to the company across the diverse market where people from different cultures are found. This factor makes Allstate Company manage to appeal to the market since it is capable of tailoring its insurance products to meet the diverse needs imposed upon its clients by the various cultural backgrounds they come from. Secondly, the company has the advantage in that it understands the various needs of different cultural backgrounds and hence it gains the much needed knowledge about the market. Allstate Company can understand better the culture of market consumption hence it is in a better position in succeeding in the diverse market as compared to the competitors it has.

Employee retention forms the other main advantage that Allstate Company gets from making use of the diverse index that it has developed. As a matter of fact, the company has a very high rate of employee retention as compared to the competitors in the industry. This retention of employees ensures that the massive wealth of knowledge that the employees have accrued over the years remain within the realms of the company. The diversity goals ensure that the employee morale is improved and thus the employees have the capacity to deliver to the company their best. Increased performance therefore comes as a by product of the diversity goal pursued by Allstate.

Recommended Types of High-Performance Reward System Allstate Should Use To Motivate Its Employees Reach Its Diversity Goals

As had already been briefly mentioned in the upper part of the paper, Allstate rewards managers who operate in line with diversity goals through monetary compensation comprises up to 25% of the manager's net pay. Other motivators in other forms need to be incorporated into the company so that even higher levels of diversity are realized. As Grant, 2004 pg 207 notes, symbols of elevated status can be useful tools to determine diversity level for a company. Allstate Company could therefore introduce a symbol which would be coveted enough as a way to motivating the employees towards competition that is healthy. Examples of this status that is elevated may be a fully serviced prestigious company car, trophies among other symbols of prestige.

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Work incentives are another way to motivate the employees. Use of holidays, promotions and monetary compensations are perfect examples of work incentives that may be used. Allstate Company can also in addition to the motivators above, recognize the improvement of performance brought in by employees on an individual note. Highest improvement also forms a very healthy ground that the company could use to motivate the employees into higher productivity rates. Personal hard work may be effectively built using this approach and consequently, the adverse effect of competition among the employees may be tamed by the management.

Whether I would be motivated by the Diversity Index and QLMS as an Allstate employee

The QLMS and Diversity Index programs founded at Allstate Insurance Company are clearly very fulfilling means of motivating employees towards working even harder for purpose of fostering the growth of the company and their own professional paths. The two systems of motivation that have been planned by the company offer a very nice platform that would bring motivation for me as an individual assuming that I was an employee of Allstate Company. The prime reason as to why I consider the diversity program as very appropriate is the fact that the Diversity Index incorporates succession programming to all types of employees. This implies the simple fact that the employees from minority ethnic groups and racial backgrounds are not disadvantaged at all in getting the top management positions in the company (Grant, 2004 pg 214). Hard work from all the employees is made possible by the fact that all genders, races and people with disabilities for training so as to have succession of the top positions in the future.

On a different perspective, the QLMS program becomes very handy in helping the employees in Allstate Insurance Company develop not only a clear but very accurate vision of the kind of services that they have to offer to the public. The fact that the QLMS program is not decided by any internal managerial positions but by the customers of the company who are very neutral, suggests that it is by far the most objective and realistic measure of individual performance. This fact may be a very heavy propeller for the employees to serve their clients in the best manner possible so that they are ranked highly by the very same customers that they are serving (Wilson, 2003 pg 148).