Which one of the following tools is not used for forecasting personnel needs (Labour Demand) by an organization?

Correct option is B

Forecasting personnel needs (labour demand) involves predicting the future workforce requirements based on historical trends, business growth, and economic factors. The commonly used forecasting techniques include Trend Analysis, Ratio Analysis, and Scatter Plot, but Markov Analysis is not a direct labour demand forecasting tool.
Now, let’s analyze each option:
Trend Analysis – Used for Forecasting Labour Demand
Examines historical employment data to predict future workforce needs.
Helps in identifying patterns of hiring and workforce growth.
(B) Markov Analysis – NOT Used for Forecasting Labour Demand
Markov Analysis is primarily used for internal workforce planning rather than predicting overall personnel needs.
It tracks employee movements (e.g., promotions, transfers, resignations) within an organization.
It is useful for succession planning, not for forecasting external hiring needs.
(C) Ratio Analysis – Used for Forecasting Labour Demand
Uses historical ratios (e.g., employees per unit of output) to determine future staffing needs.
Example: If a company needs 1 worker per 100 units produced, this ratio helps forecast labour demand as production increases.
(D) Scatter Plot – Used for Forecasting Labour Demand
Scatter plots help identify correlations between workforce size and business performance metrics.
Example: Relationship between revenue growth and the number of sales representatives can be analyzed to forecast labour demand.