BU418 Lecture Notes - Lecture 7: Demand Forecasting, Trend Analysis, Big Data
Document Summary
Methods of forecasting the demand for human capital resources is determined by strategic and operational requirements of the firm. Understanding the demand for talent begins with the firm"s strategy, and flows from the value-generating activities of the firm. Methods of forecasting can be divided into two main categories: quantitative and qualitative methods. Trend analysis is a quantitative approach that attempts to forecast future personnel needs by extrapolating from historical changes in one or more organizational indices. A single index, such as sales, or ratio such as sales per employees may be used. However, multiple predictive techniques used b professional planners rely on a combination of several factors. Ratio analysis involves examining the relationship between an operational index and the demand for labour (as reflected by the number of employees in the work-force) and is a relatively straightforward quantitative demand forecasting technique used by many organizations.
