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The Hr Planning Process

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HR Plan-08s

The HR Planning Process

I. HR Forecasting: Meaning

II. Forecasting Activity Categories

III. HR Forecasting Time Horizons

IV. Determining Net HR Requirements

I. HR Forecasting: Meaning

HR forecasting constitutes the heart of the HR planning process. It can be defined as ascertaining the net requirement for personnel by determining the demand for and supply of human resources now and in the future. After determining the demand for and supply of workers, the organization's HR staff develop specific programs to reconcile the differences between the requirement for labour in various employment categories and its availability, both internally and in the organization's environment. Programs in such areas as training and development, career planning, recruitment and selection, managerial appraisal, and so on are all stimulated by means of the HR forecasting process.

II. Forecasting Activity Categories

Forecasting activity can be subdivided into three categories: • transaction-based forecasting, • event-based forecasting, and • process-based forecasting.

# Transaction-based forecasting analyses focus on tracking internal change instituted by the organization's managers.
# Event-based forecasting is concerned with change in the external environment.
# Process-based forecasting is not focused on a specific internal organizational event but on the flow or sequencing of several work activities (e.g., the warehousing shipping process).
All three categories are important if we are to have a comprehensive method for ascertaining our HR requirements.
Forecasting is only an approximation of possible future states and is an activity that strongly favours quantitative and easily codified techniques. As such, it is important that an explicit effort be made to obtain and incorporate qualitative data into our analyses.

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