Allstate Insurance Compnay

BUS520 – Leadership and Organizational Behavior

April 27, 2011

Abstract

The purpose of this paper is to evaluate Allstate’s goal setting process to determine whether or not Allstate has an effective goal-setting program, to discuss the competitive advantage Allstate has from the development of its Diversity Index, to recommend the types of high-performance reward system Allstate should use to motivate its employees to reach its diversity goals, and to discuss whether or not I would be motivated by the Diversity Index and QLMS if I were an Allstate employee.

Allstate Insurance Company

The goal-setting model as defined by Hellriegel and Slocum (2011) has four motivational aspects for goals: goals direct attention, goals regulate effort, goals increase persistence and goals foster strategies and action programs. Allstate Insurance Company uses goals to motivate its employees. As cited by Wah (1999), Allstate’s focus is to increase levels of employee and customer satisfaction through an integrated approach to diversity in the workplace which impacts its business growth. Allstate strives to increase its customer base through diversifying its workforce along with enhancing each individual’s abilities on a continuous basis which it believes creates a competitive advantage. It works to find the potential of each employee by proving them with tools and resources to further their career development. This is accomplished through internal training, coaching and mentoring as well as formal education. As employees gain additional abilities they become eligible for opportunities to advance within the company. These career development programs are based on surveys and feedback provided by the employees. Additionally employee input is used to create problem solving action programs and to improve work processes. Employees are motivated to discover their own potential and, with the assistance of their leaders, they develop goals that they focus on to achieve for...