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Role of Statistics in Business Management

Role of Statistics in Business Management

  • Submitted By: mayuri
  • Date Submitted: 02/11/2009 9:08 PM
  • Category: Business
  • Words: 2807
  • Page: 12
  • Views: 2793

HRM 2100 – Human Resource Planning

Balancing Supply and Demand Considerations

Introduction

HRP should strive for a proper balance not only between forecasting techniques and their application, but also between the emphasis placed on demand considerations and that placed on supply considerations. Demand considerations are based on forecasted trends in business activity. Supply considerations involve the determination of where and how candidates with the required qualifications are to be found to fill vacancies.

Determining Human Resource Gaps

This step involves comparing the workforce demand forecast to the workforce supply projection. Gap analysis identifies situations where demand exceeds supply, such as when critical work demand, number of personnel, or competencies will not meet future needs. It also identifies situations when future supply exceeds demand, such as when critical work demands, number of personnel or competencies exceeds needs. In either event, the organization must identify these differences and make plans to address them. It is important to note that calculating gaps and surpluses will simply provide the organization with data in terms of what needs to be done. It is the actions that the organization decides to take to address these gaps and surpluses that results in the workforce plan.

Comparison of forecasted labor demand and supply

A comparison chart can be developed to find what is available and to what extent it can fulfill the demand forecast. This exercise helps us have an idea of the quantitative and qualitative gaps in the workforce. A reconciliation of demand and supply forecasts will give us the number of people to be recruited or made redundant as the case may be. This forms the basis for preparing the Human Resource Action Plan.

In this process a company always needs to keep repeating this step as it operate in a changing environment. Changes in product mix, union agreements, and competitive action are some...

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