As changes occur, managers must continually forecast of both need and capabilities of the firm to do an effective job at strategic planning
• Managers must focus on (at least) three elements:
ü Forecasting the demand for labor
ü Forecasting the supply for labor
ü Balancing supply and demand considerations
The high costs of not forecasting or forecasting poorly are:
Ø Losing efficiency from unfilled vacancies which can be costly, especially considering amount of time it takes to hire and train
Ø Unnecessary layoffs causing some competent and ambitious employees to seek other employments
• Accurate forecasting ensures that companies will have the right number of right kinds of people, in the right places, and at the right times, doing thing that provide value to both
organizations and employees
•