Refer to an organization you are familiar with either from your own experience,or one you have read about in the news or in your textbook.Define what HR forecasting means and its strategic importance to the organization.

HR forecasting can be defined as the process of ascertaining the net requirement for human capital by determining the demand for and supply of human resources now and in the future.Forecasting is deeply embedded within the organization's strategy and structure.Firm strategy and environmental scanning,as discussed in chapters 2 and 3,are important steps in determining the kinds of activities and behaviours that are critical to organizational success.Organization design helps to determine how the knowledge,skills,abilities,and competencies that are necessary to demonstrate the required activities and behaviours are acquired by the firm (e.g. ,through career development and mentoring,training,or external selection).Forecasting works within these boundary conditions to fulfill the firm's requirement for human capital.
Effective strategic HR forecasting can reduce HR costs,increase organizational flexibility,ensure a close linkage to the macro business forecasting process,and ensure that organizational requirements take precedence over issues of constraint and scarcity.