Allstate Organizational Structure

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The insurance industry includes several different occupations, with each occupation often involving some form of specialization. In the insurance industry, the structure of a company must adhere to its diverse population of employees; Allstate is no exception. Allstate is a for-profit insurance company which balances its profit gains with its equal need to provide to and improve the communities around it. For the most part, Allstate can be viewed as having an organic organizational structure and an integration environment. Allstate has the typical vertical hierarchy one would expect of a large insurance company. At its top is the board of directors, then chairman and chief executive officer Tom Wilson, followed by a series of presidents—president of the Allstate Corporation, president of emerging business, west territory, east territory, Allstate life and retirement, and so on. As would be expected, next down the line are the …show more content…

One poorly-suited structural element for Allstate would be strict guidelines for the span of control. If Allstate were to commit itself to either a wide or narrow span of control, it would likely notice that some areas may have too many people reporting to one person while other areas would notice the opposite effect. This would be due to Allstate’s team structure which allows it to define teams in lax, situations terms. In order to combat such a problem, it would be best to individually consider spans of control for each level of each section of Allstate. This would likely result in a narrow span of control at the top of the organization, a wide span of control in the middle, and a slightly less narrow span of control on the bottom; in addition, in given situations where circumstances are different than the norm of the organization, managers would be more capable to adjust the span of control to their