Allstate Insurance Company

Allstate Insurance Company

April 28, 2011

Using the model for goal setting, evaluate Allstate’s goal setting process to determine whether or not Allstate has an effective goal-setting program.

Allstate goal setting program is pretty much complete according to the goal setting model (Hellriegel & Slocum, p. 194, 2011), it emphasizes the challenges provided for the individual: goal difficulty, goal clarity and self-efficacy. Setting difficult but clear and achievable goals, for individuals who believe that they have the ability to complete their task, leads to high performance. Allstate provide their employees with a road map to succeed. Allstate wants to develop the potential for excellence in all its workers by providing them with tools and resources and the opportunity to become better employees. In addition, Allstate focuses on affirmative action and diversity awareness through education and training. Based on the information presented in the case, four moderators-ability, goal commitment, feedback and task complexity-influence the strength of the relationship between challenging goals and performance. All four moderators must be present to motivate an employee to achieve the goals. These characteristics channel or focus the employee’s motivational efforts.

Allstate also has four specific steps to impact business results which are succession programming, development, measurement, and accountability and rewards.

 Step one: Succession Programming. They identified and developed candidates for each key position. Allstate’s management information system enables it to track and measure key drivers of career development and career opportunities for all of its employees, ensuring that the company’s future workforce will be diverse at all levels.

 Step two: Development. Through the company’s employee development process, all employees receive an assessment of their current job skills and a road map for developing the critical skills...