The purpose of time-keeping is to provide basic data for:
- Pay-roll preparation;
- Finding out the labour cost of a job/product/service;
- Attendance records to meet statutory requirements;
- Determining productivity and controlling labour cost;
- Calculating overhead cost of a job, product or service;
- To maintain discipline in attendance;
- To distinguish between normal and over-time, late attendance and early leaving; and
- To provide internal check against dummy workers.
The time-keeping office records the attendance of workers. Depending on the number of workers, a separate department may be established or it may form part of the personnel department.
Wages paid on the piece rate basis also require that attendance be recorded for the following reasons:
- Records of attendance are necessary for statistical purposes.
- If overhead rates are based on labour rates, time recording is necessary.
- Output will decrease if attendance is unchecked. There may be more idle time and production schedules may not be followed.
- Some workers may not be punctual. This will affect the morale of the workers.
- It is necessary to ensure that production hours have been properly utilized.
- It provides data for calculating bonus and overtime.
- Labour costs can be allocated on this basis.
- For calculating dearness allowance, it is necessary.
- For ascertaining payment under certain schemes of benefits, e.g., P.F., Pension, etc.
- For calculating leave with pay, etc.
Various methods of time keeping are available, which may be grouped under manual and mechanical methods, as under:
Manual methods
- Attendance register method: An attendance register is kept at the entrance of the factory gate in this method. The in and out timings are noted, either by the worker himself or by a staff of the time office. Later, entries are made to the individual attendance records of the workmen.
- Disc method: Under this method, metal discs bearing employee’s numbers allotted by the personnel department are placed on hooks on a board provided either at the gate or at the entrance of the department. On entering the factory, the worker removes the disc bearing his number from the board and places it in a box kept for this purpose. The box is taken away as soon as normal reporting time is over. A worker coming late will pick up the disc and put it in the “Late” box provided in the department. Such late box is normally changed every half an hour up to the maximum late attendance time allowed. The timekeeper records the attendance in the register on the basis of these discs.
Mechanical methods
The attendance cards are used in time clocks installed at the entrance of the factory. On entering the factory, the worker takes his card from ‘OUT’ racks and press it inside the clock, which will print arrival time in ‘IN’ column. He then places it in ‘IN’ rack of the department where he reports for duty. Late attendance is normally reported in red ink. Similarly, when the employee leaves the factory, he collects the card from the ‘IN’ rack and punches the time in the clock and keeps it in the ‘OUT’ rack. It is necessary that the timekeeping staffs are present at the time of punching the cards to supervise the procedure. The clock cards are Collected by the timekeeping staff daily or weekly for recording in Statutory Attendance Register. Correct recording of attendance time is very important where wages are paid on the basis of time worked. Where payment is made by results, such as, by piece rate method, it would still be necessary to record correctly the ‘in’ and ‘out’ timings.
