HR Demand Forecast

Question

Write short note on HR Demand Forecast?

Answer 1

Demand forecasting is defined as a procedure of estimating the future quality and quantity of individuals which required to achieve the future needs of the organization. Annual budget and long-term corporate plan when translated into activity form the basis for HR forecast. Demand forecasting is prejudiced by both external factors and internal factors. External factors comprises competition, economic climate, laws and supervisory bodies, variations in technology and social influences whereas internal factors are budget constraints, production level, new products and services, organizational structure and employee separations.

For example: In the case of a manufacturing company, the sales budget will form the basis for production plan giving the number and type of products to be produced in each period. This will form the basis upon which the organization will decide the number of hours to be worked by each skilled category of workers. Once the number hours required is available organization can determine the quality and quantity of personnel required for the task.