Which is the best option for the HR director to use to increase productivity?

An organization has identified several areas in which productivity is not meeting goals. The HR director is charged with finding a way to help increase productivity in the identified areas. After examining employee surveys from the underperforming areas, the HR director concludes that management is performing adequately but teams are still not working together as needed. The HR director also examines compensation in the area to see if below-average base pay is causing employees to lack motivation, but she finds that base salaries are competitive in the area.

Which is the best option for the HR director to use to increase productivity?
A . Replace a portion of the underperforming teams with external candidates.
B . Reorganize the department to mix up underperforming teams.
C . Offer group incentive pay based on group performance targets.
D . Offer individual incentive pay based on individual performance targets.

View Answer

Answer: C

Explanation:

Group incentive pay is the best option. Knowing that the issue does not stem from management performance or issues with base pay, HR should look to incentivize the groups to perform better together. Offering individual pay may exacerbate issues with teamwork, as individuals may work against other members of the team to earn a bonus. Reorganizing or replacing team members are both larger undertakings that may be less efficient at handling the issues than offering a group incentive.