Strategic Human Resource Management

Section Three

Industry Characteristics

The type of industry also affects technique utilization, as
companies in regulated industries tend to use more
sophisticated forecasting techniques. These industries are
normally subject to less change and, as a result, forecasts can
be quite accurate. Not surprisingly, forecasts in utilities,
insurance companies, and railroads have often been highly
accurate. This accuracy could be contrasted with an industry,
such as high-fashion women’s clothing, in which forecasts can
be off by a wide order of magnitude. Regardless of the
planning technique employed, a paradox of planning in general
is that it is probably the most difficult to conduct in
circumstances in which it is most needed. Because human
resource planning is undertaken to reduce uncertainty, the
resultant need for planning is greatest in industries facing the
greatest environmental change.^34