human resource demand forecasting
Answers
Explanation:
Human resource (HR) demand forecasting is the process of estimating the future quantity and quality of people required. The basis of the forecast must be the annual budget and long-term corporate plan, translated into activity levels for each function and department. In a manufacturing company, the sales budget would be translated into a production plan giving the number and type of products to be produced in each period. From this information, the number of hours to be worked by each skilled category to make the quota for each period, would be computed. Once the hours are available, determining the quality and quantity of personnel will be the logical step.
There are several good reasons to conduct demand forecasting. It can help: (i) quantify the jobs necessary for producing a given number of goods, or offering a given amount of services; (ii) determine what staff-mix is desirable in the future; (iii) assess appropriate staffing levels in different parts of the organisation so as to avoid unnecessary costs; (iv) prevent shortages of people where and when they are needed most; and (v) monitor compliance with legal requirements with regard to reservation of jobs.