Name of the Case Study: Compensation for Purchasing Managers

Tarini Prathiksha M (PGP13241)

Situation/Scenario Analysis: To find out who purchasing managers are and how much they
should be paid, a survey was undertaken. A sample of 1839 managers who read Purchasing
Magazine and responded to the survey on the Purchasing website made up the sample.

Objectives of the case: By gathering data on managers' salaries, ages, industries, and other
factors, statistical analysis can be done to ascertain how manager salaries vary among
industries and how they differ based on years of experience. For instance, compared to
managers who purchase office supplies and equipment, buying managers who purchase IT
goods and services receive an average salary of $101,104.
Decomposing the issue/challenges to smaller modules: A sample's data is not
representative of the population as a whole.

Identifying the alternatives: To learn more about how managers are compensated, data
based on a wide range of variables can be acquired. The data can also be acquired based on
geographical regions, such as the USA's East Coast, West Coast, and Mid-West, or local
regions within a country, such as Canada and the USA.
Choosing the best possible solution out of all alternatives: The best option is descriptive
statistics, which will aid in understanding the major subgroups of purchasing managers.
Industry, title, years of experience, and geography can all be taken into consideration when
determining compensation. Bonuses or stock options may also be used to determine
remuneration.

Results with analytical analysis: We are 99% positive that the actual population fraction of
buying managers with a college degree or certificate is between.703 and.757 using statistical
concepts.
Managerial Implications/Significance: Businesses can use the data for buying managers to
make decisions based on the conclusions drawn. They can allocate a proper budget for
employing purchasing managers according to the profession, job title, and level of experience
required.
Recommendations/scopes: Compensation varies between businesses and job categories.
College graduates are more likely to earn more money as purchasing managers.