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A high degree of market variability means that the consumer market-in which the organization operates-changes over time in quantity and/or quality. The quantitative changes indicate the changes in the demanded numbers of products or services. The qualitative changes indicate the demand by customers for other types of products or services in the same product or service class. The impact of market fluctuations on manpower requirement has been described, for instance, in Sayles and Strauss (1977).
3. 4. Reality of the model, Application to numbers of employees, Forecasting of variables, Estimation of manpower requirement in the past. Reality of the model. In our view, the multivariate models are more useful for manpower requirement forecasting than the univariate models. The fact that multivariate models can include those factors that determine the manpower requirement underlines the reality of these models. Naturally it is essential to use the right explanatory variables and also a sufficient number of variables in order to forecast the personnel requirement accurately.
High rigidity of manpower requirement occurs, for instance, if the organization wants to accelerate automation but cannot do so with the actual manpower distribution. In the case of high rigidity of manpower requirement and/or availability, it is important to execute manpower planning activities. Variability means that manpower requirement or availability changes over time. If we use the term variability, then we mean predictable variability (that is, there are fluctuations, but these fluctuations can be forecasted).