Allstate Insurance Company
Mary E. Jones
Dr. Bruce Macdonald
July 28, 2010
This paper will discuss the goal setting process, competitive advantage of using the Diversity Index, and the types of high-performance reward systems that should be used to motivate employees to reach their diversity goals at Allstate Insurance Company.
According to the goal setting model (Hellrigel & Slocum, 2011, p. 194), 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 tasks, leads to high performance. Four moderators-ability, goal commitment, feedback, and task complexity-influence the strength of the relationship between challenging goals and performance. If the individual has the ability, is committed to the goal, and is given feedback on progress toward achievement of the goal-and if the task is complex-high performance will result. All four moderators must be present to motivate an employee to achieve goals. Four mediators-direction, effort, persistence, and task strategy-facilitate goal attainment. These four characteristics channel or focus the employee’s motivational efforts. Performance, rewards, satisfaction, and consequences complete the model. “Diversity is Allstate’s strategy for leveraging differences in order to create a competitive advantage.” (Hellrigel & Slocum, 2011) This strategy has two major points: one is internally focused and the other is externally focused. The internal focus of diversity is about “unlocking the potential for excellence in all workers by providing them the tools, resources, and opportunities to succeed.” The external focus of diversity is about making certain that the workforce matches the experiences, backgrounds, and sensitivities of the market it serves. “Every employee counts at Allstate, which means...
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