Which of the following statements about HR demand forecasting is true?

Question

BlackTom AI · Accepted Answer

Consider the concept of HR demand forecasting and what it typically encompasses in human resources management. 
Option 1: 'HR demand forecasting is an internal labor supply forecast.' This phrasing aligns with standard HR forecasting terminology, where demand refers to the number and types of employees a company needs to meet its objectives, usually viewed in relation to the organization’s internal plans and projected workload. The emphasis on internal alignment with business strategy makes this a plausible true statement. 
Option 2: 'HR demand forecasting uses census figures to calculate labor supply and demand for a particular industry.' While census data can inform broad labor market analyses, HR demand forecasting at the organizational level usually relies on internal business forecasts (sales, production, etc.) rather than census data for calculating demand. Census information is more often used for macro labor market studies rather than precise internal forecasting. This makes the option less accurate as a general description of HR demand forecasting. 
Option 3: 'HR demand forecast only involves forecasting a specific business's labor needs for some future time.' This statement narrows the scope too much. HR demand forecasting typically considers multiple time horizons (short, medium, long term) and integrates strategic business plans beyond a single time frame, and it is not confined to a single business’s needs in every case. The word 'only' renders it misleading. 
Option 4: 'HR managers do not typically engage in HR demand forecasting because the forecasting process requires an expert in research.' This is inaccurate; while expertise can help, many HR practitioners are trained to perform or participate in demand forecasting, using established methods and tools. It is not a statement that reflects common practice. 
Option 5: 'HR demand forecasting is an external labor supply forecast.' This confuses internal demand forecasting with external supply analysis. Demand forecasting focuses on the organization’s needs, while supply forecasting often deals with external labor market conditions. Thus, labeling it as external is incorrect. 
In summary, each option presents a distinct claim about HR demand forecasting. The statements differ in scope, data sources, and who conducts or uses the forecasting, and evaluating them helps identify which description best fits the standard understanding of HR demand forecasting.

BUS-10-38944 Quiz (Chapter 8)

Which of the following statements about HR demand forecasting is true?

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