LS222 Chapter Notes - Chapter 7: Shyness

• School: University of Waterloo
• Department: Legal Studies
• Course: LS222
• Professor: Jennifer Schulenberg

Document Summary

Steps: select appropriate business / operational index, known to have direct influence on demand of labour, subjected to future forecasting as result of normal business planning process, track business index over time, at least 4 to 5 years most recent, preferably 10 years , track workforce size over time, total # of employees, amount of direct and indirect labour for exactly same period, calculate average ratio of business index to workforce size, employee requirement ratio: relationship between operational index and demand for labour, calculate forecasted demand for labour, divide annual forecast by average employee requirement ratio for each future year to arrive at annual demand for labour, per year, divide level of sales y average employee ratio for forecasted numerical demand for labour each future year, remember: analysis only incorporates relationship between single business variable and demand for labour, any single variable relationship provides simplistic forecast for demand.