The Use of Regression Equations to Predict Manpower Requirements

Hundreds and perhaps thousands of decisions are made each day that a company operates and none is more complex than the effective reduction of manpower. These reductions must be accomplished on a selective basis so that the functional areas of the company may remain in balance as business conditions change. An objective analysis of the nature of the manpower reduction problem may be made through the use of regression equations. Results should be tempered through good business judgement, with “complexity factors” introduced to temper the decisions made. The technique is illustrated with an actual case study in order to make a more realistic presentation.