SPHR Question #1: Real Exam Question with Answer & Explanation

An HR director has been hired by a high-technology business that has been growing at a rapid rate. There are 300 professional employees in manufacturing and 80 in clerical and laboratory support. There has been no formal human resource function in the past, with each department head controlling the hiring, salary adjustments, and other details. There are no established working hours except for non-exempt employees and the work environment is very informal in dress and supervisory relationships. The president wants the new director to identify the key areas of importance. Which of the following should be done first if the president indicated a desire to establish a formal pay program?