I have just started at a new firm and have one person reporting to me. She has decided she doesn't need to follow my instructions or turn up to any meeting I schedule. As you can imagine I got into a conversation with HR pretty quickly, however rather than initiating disciplinary measures or at least some sort of monitoring, they and my manager have decided that she is "upset" and have now allowed her to report to another manager, which means in practice that she is doing next to nothing while I do my job and hers. Also, the others in the team are clearly losing respect for me as well because they can see that I do not have the respect of my direct report. I am not sure what to do - any ideas?
BTW there is no indication that she is having any personal difficulties which would explain this behaviour. Nor is there any criticism of my performance.