Forecasting in Human resources involves activities of projecting the needs time might be human or revenue or both. Forecasting has far-reaching effects on the business it helps to satisfy both short term and long term business needs to be based on the future predicted sales, office growth, and other factors that affect the company’s need for a labor. Human resource manager of an organization know the importance of managing resource- this would mean planning ahead of the requirement being sent out and administrative cost of hiring such resource. An HR becomes an integral part of an organization when they manage the resource and revenue simultaneously.
One of the most basic forms of forecasting for an HR is the creation of an organization chart. If your organization has a flat form of structure which consists of only key employees who work directly in the circle with you then it’s good that you start creating a chart that will be given an idea how the company will look ones it starts growing into a bigger organization. Which of the departments would be most important when you start off and which will lead to growth will help you in making an organization chart. The organization chart gives you a direction when hiring in the latter stages.
Everyone wants their organization to grow and so the labor also needs to change with rising and fall of the organization. It would be based on the organization ability in the revenue which will later transform into the organization ability. This gives the ability for the organization to attain fulfillment in case the customers want to see more of the organization.