ADMS 3430 Chapter Notes - Chapter 6: Nominal Group Technique, Demand Forecasting, Trend Analysis

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Trend/ratio analysis: objective statistical technique: 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, might be used. Other operational indices are (1) the number of units produced, (2) the number of clients serviced, (3) the production hours. Some organizations use trend analysis to ascertain demand requirements for (1) direct labour and (2) indirect labour. Although trend/ratio analysis is widespread due to its ease of use, remember that the analysis incorporates only the relationship between a single business variable and demand for labour. Y= the dependent variable (hr demand, number of personnel required) B= the slope of linear relationship between x and y. X= the independent/causal variable (the level of sales, production of outputs) Regression models can be extremely valuable tools for the hr planner.

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