Control Over Labour Costs

Proper employment and efficient utilization of labour are vital factors which determine the cost and quality of an organisation’s products and consequently its results as a whole. This requires employment of efficient workers, proper recording of time taken by them in production and accounting for the wages paid to them. The dimensions are confined not only to recording and accounting but also extend to employment of a suitable wage scheme, so that workers may be motivated to increase productivity. All these things depend on proper human resource management.

In a large industrial organisation there are five departments for control over labours costs:

1. Personnel department.

2. Engineering and works study department

3. Time-keeping department

4. Pay-master’s department

5. Cost accounting department

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