Q1. 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 Company evaluates the performance of the 36,000 employees twice in a year by the use of diversity index. The diversity index is a portion of the Quarterly Leadership Measurement System (QLMS). The QLMS is an online system which surveys and provides a feedback about the performance of employees. The diversity index seeks to answer questions such as the extent to which Allstate delivers services of high quality to customers irrespective of their race, gender, and age among other aspects. The index also seeks to identify the level at which managers treat their subordinates with respect and dignity at the workplace. The practices of managers are reviewed on how they are able to seek and make use of the diversity of employees’ skills. In addition, the index seeks to identify how often insensitive behaviors are experienced at work. These insensitive behaviors relate to the bad comments about the ethnic group, gender or age of the employees. Lastly, the index seeks to identify the level of trust between employees are their managers, and the freedom to provide different opinions. Therefore, Allstate has an effective goal setting program because it has been able to develop an integrated system that focuses on all aspects of the organization. The system ensures that both the internal and external environmental factors are well addressed (Hellriegel & Slocum, 2007).
Discuss the competitive advantage Allstate has from the development of the Diversity Index.
The competitive advantage that Allstate has from the development of the Diversity Index is that; it enables the organization deliver services to customers irrespective of their race, age or gender. This helps reduce discrimination in the delivery of services, and this has improved the level of trust with the customers. As such, the organization has developed a good corporate image, and this has improved the relationship of the organization with the external environment (Barak, 2010).
In addition, the organization has been able to develop its internal environments by improving relationship between managers and their subordinates. The Diversity Index identifies how managers treat their employees with respect, and this helps improve the relationship between the two parties. It also seeks the discriminatory habits of the managers. As such, the index identifies how managers discriminate their subordinates according to their age, gender or racial background. This helps reduce discrimination in the organization, with the aim of improving the internal environments (Barak, 2010).
The index captures any inappropriate behavior existing in the organization. It seeks to identify the relationship among the employees. This is achieved by determining any insensitive behaviors at the workplace. Any racial, gender or age discrimination among employees is identified and dealt with accordingly. In addition, the freedom to provide opinions in the organization is determined. This has improved decision making process because the ideas of employees are considered. This has improved the level at which employees accept the decisions made by the organization (Barak, 2010).
Q3. Recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals.
Allstate seeks to apply diversification in all its systems, and should seek to apply diversification on the reward systems in the organization. This has been clarified by the statement provided by DeVaries when he says: “What you measure is what people focus on” (Hellriegel & Slocum, 2007, p.216). The management has linked the compensation system to the diversified goals of the company. Therefore, the company should adopt both monetary and non-monetary reward systems to improve the performance of employees. To maintain competitiveness in the market, Allstate should use reward systems that ensure that employees have high quality productivity while reducing the costs involved. The reward system and recognition process applied by the organization will help the company to change the work habits of the employees. Creating a diversified reward system will help promote the relationship among employees, and their perception towards the management team (Enotes, 2011).
The use of monetary reward systems should be applied to increase the quality of performance. This strategy should be pegged on the improved performance of the employees. This will help improve the competency of employees because they will work to achieve better results. Money has been quoted as a motivator, and the employees will be motivated to provide better quality work when their remunerations are increased (Owen & Wright, 2001). The reward system should not be discriminative to create a fair play. This means that any adjustments on the salary, allowances and other pay packages is not pegged on the race, age or gender of the employee. This will create a good environment to encourage diversity at the workplace. Job promotions should be based on meritocracy, such that employees who have showed improvement performance get job promotions. This will discourage discrimination in terms of age, gender and race, when promoting employees (Enotes, 2011).
Non monetary rewards can be administered by applying recognition to employees who perform better. This means that the organization can organize prize giving events. In addition, the mangers have a responsibility to ensure that they motivate their employees to improve performance by encouraging them, creating trust and appreciating them. Managers should treat their employees with respect, despite their racial background, age or gender. This will improve the level of trust and respect that employees will develop towards their managers. In addition, the management should provide training sessions to their employees so that they develop innovative skills to improve their performance. The training sessions should be aimed at improving the skills of the employees, to perform organizational duties (Enotes, 2011).
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.
If I were an employee of Allstate Company, I would be motivated by the Diversity Index and QLMS. It has been my desire to work in diversified work environments, where the opinion of all people counts. Accepting discriminative work practices causes chaos at the work place, and this reduces the productivity of the organization. All people have the potential to improve the performance of the organization, irrespective their age, gender, or racial backgrounds. Diversity at the work place would bring about new ideas from different people, and this would serve as a source of the information required to improve my performance. Understanding the cultures of other people would help improve knowledge about the market needs of various customers. This would help identify the specific needs of customers. As such, the managers would be able to develop better products which match the needs of the customers (Jex & Britt, 2008).
I would be motivated by the QLSM because my performance would be reviewed regularly. This would help made adjustments to areas where I am weak or performing poorly. Ina addition, this system would improve awareness about my career needs so that I can identify my weaknesses and strengths. As such, I would be able to identify the best training needs that I require to improve my performance. It is also important to note that succession programming would help carry out transitions in the organization smoothly. As a manager, this would help reduce conflicts of interests among the employees. This would be achieved because the employees would be aware of their stages of career development and the organizational structure. As such, promotions in the organization would be done systematically and without discrimination. This would help improve the level of career diversification in the organization (Jex & Britt, 2008).
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