## Presentation on theme: "Copyright © 2013 by Nelson Education Ltd."— Presentation transcript:

Chapter 6 Determining HR Demand Copyright © 2013 by Nelson Education Ltd.

Learning Outcomes After reading this chapter, you should be able to: Understand the importance of demand forecasting in the HR planning process Recognize the linkages between the HR plan, labour demand forecasting techniques, and the subsequent supply stage Copyright © 2013 by Nelson Education Ltd. 2

HR Demand HR demand: The organization’s projected requirement for human resources Thinkstock Copyright © 2013 by Nelson Education Ltd. 3

Two Approaches to HR Demand
Quantitative Trend/Ratio analysis Regression analysis Qualitative Envelope/scenario planning Impact analysis Delphi technique Nominal group technique Copyright © 2013 by Nelson Education Ltd.

Trend Analysis Trend analysis: Reveals the historical relationship between an operational index and the number of employees required by the organization (demand for labour) Copyright © 2013 by Nelson Education Ltd. 5

Ratio Analysis Ratio analysis: A quantitative method of projecting HR demand by analyzing the relationship between an operational index and the number of employees required ©atm2003/Shutterstock Copyright © 2013 by Nelson Education Ltd.

Regression Analysis Regression analysis: Very effective, quantitative forecasting technique for short-, medium-, and long-range time horizons Can be easily updated and changed Uses SPSS or SAS Copyright © 2013 by Nelson Education Ltd. 8

HR Budgets HR budgets: Quantitative, operational, or short-run demand estimates that contain the number and types of personnel required by the organization as a whole and for each sub-unit, division, or department Copyright © 2013 by Nelson Education Ltd. 9

HR Budgets: Staffing Table
Staffing table: Total HR demand requirements for operational or short-run time periods Thinkstock Copyright © 2013 by Nelson Education Ltd. 10

HR Budgets: Staffing Table

Two Approaches to HR Demand
Quantitative Trend/Ratio analysis Regression analysis Qualitative Envelope/scenario planning Impact analysis Delphi technique Nominal group technique Copyright © 2013 by Nelson Education Ltd.

Envelope/Scenario Forecasts
Envelope/scenario forecasts: Projections, or multiple-predictor estimates, of future demand for personnel predicated on a variety of differing assumptions about how future organizational events will unfold Copyright © 2013 by Nelson Education Ltd. 13

Envelope/Scenario Forecasts

Impact Analysis Impact analysis: A forecasting method in which past trends are analyzed by a panel of experts to predict future HR demand Copyright © 2013 by Nelson Education Ltd.