Michael Hodina, R.J. Smith, Andrew Cheffin, Robert Pribilski HRM/531
November 28, 2011
LCI Inc. Provides logistic and consulting services to the oil & gas, heavy construction, and critical maintenance industries. As the company has grown a lead operations manager is needed to coordinate and execute the performance of logistic services. This paper defines the thought process behind a proposed benefits and salary package. Amount justification topics include monitory value, market value, proposal, and barriers.
LCI is a supply chain consulting and services company that has concluded an operations manager is needed for their logistic services department. To ensure the profitability of the business it is important that management defines the company’s monetary value of the position, market value, and non-monetary factors. Once a monetary value is assigned to this position a complete benefits plan will need to be created that will meet LCI’s short term profit goal and long term growth objectives. Monetary Value
The performance of the operations manager can be measured in a monetary value as the amount of net profit the position creates under expected conditions. In this case It is expected that net profits will increase through two measurable stats, gross profit generated by the logistics department and direct operating costs per dollar of revenue related to the department. A current benchmark is set without the operations manager by generating averages from past department performance. For the purposes of this paper we have calculated the net performance of the logistics department at 15K a month. Each subsequent quarter will see a benchmarked growth increase of 3.5% to account for the department growth trend the company is already seeing without the position. It is estimated that the addition of the operations manager must increase capacity and revenue while subsequently bringing a linear...