Allstate Insurance Synopsis

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Allstate Insurance In order to run a successful organization, the organization must be lead by a strong leader. “The best leaders are not just charismatic; they are both transactional and charismatic” (Kreitner & Kinicki, 2004, p. 74). The leadership of an organization essentially sets the tone and culture of the organization, it is imperative that the leader’s behaviors and attitudes are in line with the values of that organization. “All organizational changes should be consistent with an organization’s mission, vision, and resulting strategic plan” (Kreitner & Kinicki, 2004). Allstate Insurance Company is a company that strives for excellence in all that they partake in. Similar to Lester scenario, Allstate is always looking for additional services and new products that the company can offer to its customers. Allstate strives for uniformity and consistency within the company and is proud of its leadership team. In March of 2007, Allstate publically announced the appointment of a new Vice President of Corporate Relations. This new executive replaced the previous leader who had been with Allstate for only nine years. This change in leadership came as a surprise to some of the current employees; accompanied with ‘fear for the unknown’. This is something to be expected, anytime there is a change in the leadership of an organization. Changes such as these can result in some of the employees becoming skeptical about their future with the organization. Additionally, employees start wondering, what if any, changes will be made by the new leaders. In the case of Allstate, although the employees were concerned in the beginning of the transition, the change has proven to be both beneficial to the organization and to the employees. Although the new Vice President of Corporate Relations has implemented some changes, none drastically impacted the employees. All of

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