HR- MPR- Demand Forecasting
Demand Forecasting:
Demand forecasting is a quantitative aspect of human resource planning. It is the process of estimating the future requirements of human resources of all kinds and types of the organisation.
Forecasting demand for human resources depends on certain factors such as:
(1) Employment trend in the organisation for at least last five years to be traced
to determine the future needs.
(2) Organisation has to find out the replacement needs due to retirement, death, resignation, termination etc.
(3) Improvement in productivity is yet another factor. To improve productivity organisation needs better employees with skills and potential. Productivity leads to growth but depends on the demands for the product of the enterprise in the market. Higher demand may lead to more employment of skilled personnel’s.
(4) Expansion of the organisation leads to hiring of more skilled persons. The base of human resource forecast is the annual budget. Manufacturing plan depends upon the budget. Expansion in production leads to more hiring of skills and technology.