Forecasting supply of human resource in pharmaceutical firm

Topics: Human resource management, Human resources, Labour economics Pages: 6 (1885 words) Published: April 17, 2014
“Choose an industry and explain why it is important for them to forecast external/internal supply of human resources?” In the contemporary world of competition, companies thrive for best to perform better than their competitors. The impact of human resource management practices on organizational performance has been a widely researched area for years. Results of studies, from developed countries to developing countries, have been time and again showing that HR practices have significant impact on organizational performance (Delaney & Huselid, 1996; Katou & Budhwar, 2007; Sing, 2004; Tzafrir, 2006). Therefore, there is a critical need to get the best people in the right place at the right time. Matching human resources with planned organizational activities for the present and the future is one of the main problems faced by an organization. So, forecasting helps to match the requirements and the availabilities of employees. Therefore, management must forecast the demand and supply of human resources as part of the organization’s business and functional planning processes. Long-term business requirements, promotion policies, and recruitment (supply) possibilities have to be matched so that human resources requirements and availability estimates (from both internal and external sources) correspond sufficiently (Alpander, 1982:78-79). This paper examines importance of forecasting analysis on internal supply and external supply of human resources in Pharmaceutical Industry in Bangladesh. The pharmaceutical industry in Bangladesh is one of the most developed hi-tech sectors within the country's economy. Due to recent development of this sector, the industry is exporting medicines to global markets, including the European market. This sector is also providing 97% of the total medicine requirement of the local market. Some of the companies produce insulin, hormones, and anticancer drugs, which were not previously produced in Bangladesh. Leading pharmaceutical companies are expanding their business with the aim to expand into the export market. Establishing long-term human resources requirements is closely related to strategic business plans. Strategic business plans should provide a minimum base of information on which viable human resources plans can be built. On the other hand, management should consider labor availability when they establish strategic business plan because current and potentially available human resources affect the viability of strategic business plans (Alpander, 1982:79). At the beginning, management needs to estimate future labor availabilities and needs, that is, to assess the supply of labor, both within and outside of the organization. Also, they need to determine the future demand for specific numbers and types of employees. Implicit here is that supply and demand analyses should be conducted separately (Walker, 1980). The main reason for this is that internal supply forecasts tend to rely heavily on organization-specific variables, such as turnover and retirement rates, transfers, and promotions retired employees & recall of laid-off employees, etc. Forecasting supply involves determining availability of labor force in the market and new recruitment. Factors managers typically consider when forecasting the supply of personnel include promoting employees from within the organization; identifying employees willing and able to be trained; availability of required talent in local, regional, and national labor markets; competition for talent within the field; population trends and college and university enrollment trends in the needed field (Ball, 2012; Henderson, 2010). Forecasting supply of human resource provide an industry with of benefits from several ways. It helps both from internal and external perspective. The potential benefits of internal supply include greater stability and predictability of a firm's stock of skills and capabilities, better coordination and control, enhanced socialization and...

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