simple and easy presentation

1. HRP Demand and supply
forecasting
Baddi University of emerging science and
technology
Ram Murti
16PBA041
rammurtikumar033@gmail.com

2. HRP
• HRP is also called manpower planning,
personnel planning or employment planning.
• Meaning – HRP is defined as the process by
which management determines how an
organization should move from its current
manpower position to its desired manpower
position.

3. Definition
• According to beach, “Human resource planning is
a process of determining and assuming that the
organization will have an adequate number of
qualified persons, available at the proper times,
performing jobs which meet the needs of the
enterprise and which provide satisfaction for the
individuals involved.

4. Forecasting
• Forecasting is determining what is going to
happen in the future by analyzing what happened
in the past and what is going on now. It is a
planning tool that helps business people in their
attempts to cope with the uncertainty of what will
might and might not occur – it relies on past and
current data and analysis of trends.
• Forecasts may be short- or long-term.

6. Human Resource Forecasting
Process of projecting the organization’s future
HR needs (demand) and how it will meet those
needs (supply) under a given set of
assumptions about the organization’s policies
and the environmental conditions in which it
operates.

7. Demand forecasting
• Demand forecasting is the process of estimating
the quantity and quality of people required to meet
future needs of the organization
• According to Evan J. Douglas, “Demand
estimation (forecasting) may be defined as a
process of finding values for demand in future
time periods.”

8. Method of demand forecasting
• Ratio-trend analysis
• Regression analysis
• Work study techniques
• Delphi technique
• Flow models
• Other forecasting techniques

9. Factor affecting Forecasting HR
Demand
• Employment trends
• Replacement needs
• Productivity
• Absenteeism
• Expansion and growth.

10. Supply forecasting
• The purpose of identifying future HR supply
requirements is to determine the number of
employees required for each job and their
knowledge, skills, abilities, and other
characteristics.
• Specifically supply forecasting measures the
number of people likely to be available from
within and outside an organization.

11. Internal supply forecasting
• Internal supply forecasts relate to conditions
inside the org. such as age distribution of
workforce, terminations, retirements, etc.

12. Internal supply forecasting

13. Factors affecting internal supply
forecasting
• Organizational features (e.g., staffing
capabilities)
• Productivity - rates of productivity,
productivity changes
• Rates of promotion, demotion, transfer and
turnover

14. External supply forecasting
• External supply forecasts relate to external
labour market conditions & estimates of
supply of labour to be available to the firm in
the future in different categories

15. Factors affecting external supply
Forecaasting
• Competition for talent
• Industry or occupational expected growth levels
• Public policy, government, and legal changes
• Trends in labour force participation (including
entry and exit)
• Technological development patterns

16. Method of supply forecasting
• Skills Inventory
• Replacement Charts
• Succession Planning
• Flow Modeling/Markov Analysis
• Computer Simulations

17. Conclusion
• Forecasting is a process of making statements
about events those actual outcomes have not
yet been observed
• HR forecasting is all about estimating future
demand and supply of HR in an organization

18. Thank You