Allstate Insurance Company
1.Using the model on page 194, evaluate Allstate’s goal-setting process. How does it work? As one of its most important competitive advantages, Allstate Insurance Company looked for ways to leverage their strong diversity program. The company wanted to put together a robust program to help all it’s associates succeed. Their goal-setting process for this relates very closely to the goal-setting process. Allstate identifies a diverse group of candidates for each position and are evaluated on where they are now, and are given guidance as to how to achieve career opportunities. This relates to the goal-setting process as setting the expectations as far as what the goal is they want to achieve.
Employees are evaluated and measured at periodic times and given feedback as far as their progress. With regard to the model, this goes hand-in-hand with rating their performance and providing feedback. Eventually, those that perform to the highest levels are rewarded with advances and increases in percentages of merit pay. This, again, goes in-step with the model that as rewarded, satisfaction comes through or, if they don’t make it, they understand why and will adjust their behavior accordingly to make themselves successful.
2.On pages 202-203 the authors list some of the dimensions of an effective goal-setting program. Does Allstate meet these criteria? Yes, Allstate meets these criteria. First, the employee must have the knowledge and ability to attain the goal. Allstate establishes a diverse slate of employees to get into the program. These employees have been tracked and measured and are indentified and those that could succeed. Second, the employee must be committed to the goal. These employees will be because as they advance, they receive higher compensation and more responsibility. Third, people need feedback on their progress. As stated in the case, the Allstate employees are continually measured and assessed, and given direction as...
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