A company has been giving its employees automatic pay increases annually. Recently production has decreased, resulting in less profit. The president tasks HR with implementing a new goal-oriented pay plan to incentivize employees to increase production.

HR designs a pay-for-performance plan and trains supervisors. HR also sends an e-mail to all employees explaining the change, referring employees with questions to their supervisor.

As part of the new program, goal development is handled by supervisors. However, some supervisors feel that the change in pay philosophy is unnecessary and tell employees that the new pay plan will not work.

Twelve months pass and upon review of performance evaluations, HR finds that some appraisals lack goals and do not objectively measure employees' work performance. The results are recommended pay increases that are subjective and unsubstantiated by metrics.

Rumors that pay increases will be provided to employees who are favorites begin to impact morale and work production continues to decline. Leadership is disappointed with the results of using a pay-for-performance system.

HR is instructed to temporarily revert to the original pay plan and complete a further analysis of its continued viability. Employees are satisfied; however, the reputation of the company and HR has suffered due to this rollout. Production has not increased and profits are still low.

Which first step should the HR Manager take to change the current perceptions of HR with the company's managers?

Answers

A. Recommend reinstatement of the prior pay plan with minimal communication.

B. Notify all employees about the retraction of the new pay plan to avoid employee complaints and supervisor dissatisfaction.

C. Publish HR's mission, vision, and values statements, HR services, and the names of HR staff and their availability.

D. Communicate the organization's mission, vision, and strategy and HR's role in support of the organization's and employees' success.