Performance Metrics Case State: All State Insurance

Allstate Insurance Company intertwines business goals with performance metrics. Goal setting is an ongoing part of striving to become successful and happy in life. When an individual achieves a goal, another one is set to accomplish next. Goals are personal and professional and the latter determines the longitude and latitude of a chosen career path. Organizations set goals for all levels of the company, from business units to individual contributors. The successful attainment of these goals determines if it is profitable year over year.

Using the model for goal setting, evaluate Allstate’s goal setting process to determine whether or not Allstate has an effective goal-setting program. The goal-setting model has 4 aspects used to motivate employees. They include direct focus on high priorities, regulate effort, increase persistence, and create strategies and programs to achieve goals (Hellriegel, D. & Slocum, J. 2011). Allstate has a very effective goal setting program in place. One part of their program is to correlate manager’s pay to company’s goals. They use an online employee survey and feedback tool as the measurement.

This practice touches on all four parts of the goal setting model. It forces the managers to maintain focus on the company’s diversity goals, while encouraging them to identify areas of opportunities and potential solutions. Allstate also has programs to support professional and career path development to provide individuals with the necessary knowledge and ability to achieve performance goals in each position. Discuss the competitive advantage Allstate has from the development of the Diversity Index. The index sets Allstate apart from its competitor’s at the most important level, the human level.

Allstate uses it to ensure diversity inside the organization so they can understand and respect the diversity of their clients. The company’s vision states differences are a competitive edge (Hellriegel, D. & Slocum, J. 2011). An organization must be a reflection of the communities it serves. A global market requires organizations to have a diverse staff and understanding of multiple cultures. Allstate’s diversity index provides such an advantage over companies who have yet to embrace cultural differences. Recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals.

The company should use profit-sharing and culture and reward systems to motivate its employees to reach its diversity goals. Profit-sharing reinforces the team based performance rewards. This type of rewards displays the company’s recognition of each individual contribution to the bottom line. The culture and reward system is based on the employee’s culture. It recognizes the diversity at the employee level. It is based on cultural values to motivate performance (Hellriegel, D. & Slocum, J. 2011). This makes the reward specific to the culture and recognizes diversity inside the organization.

If you were an Allstate employees, discuss whether or not you would be motivated by the Diversity Index and QLMS. Provide a detailed explanation. The Quarterly Leadership Measurement System (QLMS) and Diversity Index would motivate me. It is taken twice a year and analyzed to identify issues and make appropriate changes in processes and performance. One reason it is motivating is a percentage of the merit pay is determined by the results. Another factor is the behavior specific questions asked to all employees in the index. The focus on the results and frequency of the surveys prove it’s a high company priority.

It can be perceived that noncompliance would have a negative impact on employment and advancement opportunities. It encourages consistent behavior that coincides with the diversity goals of the organization. Ultimately, diversity is part of the American culture. The citizens of this country are from all over the world. There is a global consumer base here in this society. Allstate is a leader in business because they are socially responsible. Allstate requires its employees to maintain a work environment which embraces diversity. This business strategy will maintain their competitive advantage in the market.