HRM301 Chapter Notes - Chapter 6: Ion, General Linear Model, Trend Analysis
4 Jan 2016
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Document Summary
Trend analysis: quantitative approach that forecasts future personnel needs by extrapolating from historical changes in multiple facets of the organization such as sales, ration, sales/employee. Ratio analysis: examining the relationship between operational index and demand for labor - straightforward forecasting technique used by many organizations. Operational indices: number of units produced; number of clients serviced; production hours. Trend analysis can be used to ascertain demand requirements for: direct labour, indirect labor. Only between single variable relationship and demand for labor. Quantitative forecasting technique for short, medium and long-range time horizons. Regression analysis presupposes that a linear relationship exists between one or more independent (causal) variables which are predicted to a ect the dependent (target) variable - future hr demand for personnel. Projects into the future on the basis of historical relationship between independent and dependent variables. Linearity refers to observed relationship between independent and dependent variables.
