Once the organizational objectives are defined by the top management and the role of HRP is to sub serve the overall objectives by ensuring availability and utilization of human resources.Once the organizational objectives are specified, communicated and understood by allconcerned, the HR department must specify its objectives with regard to HR utilization inthe organization.
HR Demand Forecast
Demand forecasting is the process of estimating the future quantity and quality of peoplerequired. The basis of forecast must be annual budget and long-term corporate plan,translated into activity levels for each function and department.There are several good reasons to conduct demand forecasting-Quantify the jobs necessary for producing a given number of goods-Determine what staff-mix is required-Asses appropriate staffing levels in different parts of the organization-Prevent shortages of people-Monitor compliance with legal requirements with regard to reservation of jobs
HR Supply Forecast
Personnel demand analysis provides the manager with the means of estimating thenumber and kind of employees that will be required. The next logical step for themanagement is to determine whether it will be able to procure the required number of personnel and the sources for such procurement. This information is provided by supplyforecasting. Supply forecasting measures the number of people likely to be available fromwithin and outside an organization, after making allowance for absenteeism, internalmovements and promotions, wastage and changes in hours, and other conditions of work.reasons for supply forecast are-Helps quantify number of people and positions expected to be available-Helps clarify staff mixes that will exist in the future-Assess existing staffing levels in different parts of the organization-Prevents shortage of people-Monitors expected future compliance with legal requirements of job reservations2