The Need for Manpower Forecasting

Employees are undoubtedly an integral part of any organization. Therefore, every organization should have the right number of employees in the right place and at the right time. In order to properly organize employees, the right personnel requirements are very much needed in manpower forecasts.

Manpower forecasts help prevent staff shortages by assessing the current manpower levels. Throughout the organization, it calculates how many people and positions are expected.



In the absence of a well-organized workforce, organizations will not be able to meet the needs of employees and will find themselves unable to cope with future business challenges. In order to meet the business objectives required, manpower forecasting/ manpower planning is essential.

Manpower planning assists in the design of skills programs to ensure that there is no gap and that the right amount and quality of staff is available when needed. Without proper labor forecasts, there may be labor market problems where job shortages grow among skilled people or people take on untrained jobs.

Methods used in Manpower Forecasting

1. Administrative/ Management Judgment

Under this, experienced management evaluates the needs of employees in their departments. This is done on the basis of their knowledge of the expected future load and efficiency of employees. Eventually, senior management compiles and approved departmental estimates.

This is a very simple and time-saving method. But it is subjective and, therefore, only suitable for small firms. This approach assists in judging informal party practices regarding labor forecasting.

2. Work-Study Analysis

This approach uses time and study movement to analyze and measure work. Such courses help managers determine the average work time of each unit. If it is possible to measure the work and set the standards, the job learning method is best suited for repetitive and manual tasks.

The work method should not always change. The start can be a production budget, followed by regular hours, output per hour; required person-hours, etc can be calculated.

3. Ratio Trend Analysis

This method helps calculate estimates based on previous data. First, calculate future estimates on the basis of time analysis/extension, after approving changes in organization, method, and functions, if any.

Extrapolation extensions statistical data past the future. Moderate movement and exponential smoothing can help with guessing. The company estimates the need for human resources on a per-sale basis.

4. Mathematical Analysis

The mathematical model shows the relationship between independent variables and dependent variables. These models highlight various factors that influence the needs of employees in the formula.

There are several types of models, eg, retreat, development models, possible models, etc. These are complex and suitable only for large organizations.

Future demand

The prepossessing future demands for human resource forecasting are promising. By comparing and analyzing employees over the past five years, the company can judge whether it is employee practices.

Replacement need depends on the first retirement, followed by death, resignation, and dismissal. Its assessment is based on past experience and future retirement status.

Productivity development would contribute to the needs of workers. better utilization of existing staff is one of the ways to profit from production. Automation and computerization are other ways to improve productivity. It will affect both the number and quality of employees. Matching skills and job requirements is the third way. Therefore, the methods of analyzing Jobs are helpful in such comparisons


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