Hrm/531 Week 4 Team Assignment

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By working as a financial advisor for Allstate, all of my income is derived from commission. Moreover, each financial advisor is apportioned a specific number of agents to work with. Allstate designed the commission scales to increase as more production is produced. The financial advisor didn’t feel the commission scales were impartial to everyone. Furthermore, the financial advisors felt some advisors had greater opportunities to make more commission, due to the fact they were working with agents that had larger business than other agents. Moreover, those advisors were giving opportunity to achieve higher commission payouts.

Conversely, several of the financial advisors didn’t sense the process nor the procedures used to determine the commission scales were unbiased. Therefore, Allstate decided to change the commission scale to base the …show more content…

Furthermore, the reward choice has a direct influence on work behavior which is considered procedural justice (Arran, Mccarter W, Northcraft B, 2016). In addition, all financial advisor are treated fairly now with pay and Allstate is even built in bonuses based solely on experience. Moreover, when individuals compare rewards with other groups or individuals with the same work experience this could be considered distributive justice (Cowherd, Douglas M, Levine I, 2016).

Caza, Arran, Matthew Mccarter W., and Gregory Northcraft B. "Performance Benefits of Reward Choice: A Procedural Justice Perspective." Human Resource Management Journal 25.2 (2015): 184-99. Business Source Premier. Web. 19 Sept. 2016.

Cowherd, Douglas M., and David Levine I. "Product Quality and Pay Equity between Lower-level Employees and Top Management: An Investigation of Distributive Justice Theory." Administrative Science Quarterly 37.2 (1992): 302-20. Business Source Premier. Web. 19 Sept.

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