Departments involved in Labour Cost Control

(1) Personnel Department:

This department in a large organisation is responsible for recruitment, training discharge, transfer etc. and maintaining their records.

The main functions are:

(i) Receiving requisition for labour from various departments

(ii) Selection and Recruitment

(iii) Information to the concerned departments like requisioning department and pay roll department.

(2) Engineering and Work Study Department:

This department helps in labour cost control through following functions:

(i) Preparing production plans and specifications for each job,

(ii) Initiating and supervising research and experimental work

(iii) Maintaining efficient and safe working conditions

(iv) Performing work-studies e.g., Time study, Motion study etc.

(v) Analyzing jobs and job evaluation and studies

(vi) Performance appraisals and labour Productivity

(vii) Fixing Piece rate.

(3) Time Keeping Department:

Its functions are maintenance of attendance records of employees and job time booking.

(4) Payroll Department:

This department has to perform following functions:

(i) To maintain record of job classification and wage rate of each and every employee,

(ii) To verify and to summarize the time of each worker as shown on daily time cards,

(iii) To calculate wages earned by each and every worker

(iv) To prepare payroll of every department,

(v) To calculate total amount of wages and deductions for each employee

(vi) To disburse wages

(vii) To devise a suitable internal check preparing and paying out wages.

(5) Cost Accounting Department:

This department is concerned with:

(i) Documentation of Wages Accounting

(ii) Analysis of total labour cost and

(iii) Treatment of idle time, Overtime, Leave Pay etc.