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Microlesson · 5-min read

Time Keeping — Objectives, Methods, and Requisites

## Time Keeping vs. Time Booking — The Core Distinction

TermWhat it MeasuresWho Uses It
Time KeepingTotal time an employee spends in the factory (attendance)Payroll Department — to calculate wages
Time BookingBreakdown of that time across specific jobs, operations, or idle periodsCost Accounting Department — for job costing

> Both records must reconcile: Time kept = Time booked to jobs + Idle time

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## Objectives of Time Keeping

1. Prepare accurate payrolls

2. Calculate overtime payments

3. Ascertain and control employee costs

4. Identify and minimise idle time

5. Enforce disciplinary measures (late arrivals, absenteeism)

6. Facilitate overhead distribution (attendance data informs overhead rates)

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## Methods of Time Keeping

### Manual Methods

MethodHow it WorksWeakness
Attendance RegisterEntry/exit times recorded in a registerSusceptible to manipulation and proxy attendance
Metal Disc / TokenEmployee collects/deposits a numbered disc; time-keeper recordsProne to errors; another employee can deposit the disc

### Mechanical / Automated Methods

MethodHow it WorksStrength / Weakness
Punch CardCard inserted into a machine that stamps timeReduces errors; no time-keeper needed. But another person can swipe the card
Bio-Metric SystemUses fingerprint, face, or retina scanEliminates proxy attendance. May be cost-prohibitive for small firms

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## Requisites of a Good Time Keeping System

  • Prevent proxy attendance — use foolproof identification
  • Record both arrival AND departure times — for accurate wage calculations
  • Prefer mechanical methods — reduce disputes between employees and time-keepers
  • Record late arrivals — to enforce discipline
  • Record time for piece-rate employees too — needed for overtime computation and idle time tracking
  • Simple and efficient — avoid long queues at attendance marking
  • Regularly reviewed and maintained — prevents errors from accumulating

Worked example

### Example 1

Choosing the right time-keeping method:

A small textile unit with 30 workers operates on tight margins. An Attendance Register costs nothing but frequently shows proxy attendance — Worker B signs in for Worker C when C is late. The owner switches to Punch Cards (cost: ₹15,000) eliminating the need for a time-keeper (saving ₹8,000/month in salary). Net payback in 2 months.

A large auto-components factory with 500 workers installs a Bio-Metric system (₹2 lakh). Despite the upfront cost, it eliminates ₹50,000/month in ghost wages from proxy attendance — payback in 4 months.

### Example 2

Reconciliation check:

Worker's punch card: 8 hours (time kept)

Job card entries: Job A = 3 hrs, Job B = 2.5 hrs, Idle = 1 hr, Job C = 1 hr → Total booked = 7.5 hrs

Discrepancy = 0.5 hours → Must be investigated and recorded (additional idle time or data entry error).

⚠️ Common exam mistakes

  • Confusing time keeping with time booking — time keeping is total attendance; time booking is allocation of that time to specific jobs
  • Assuming punch card systems eliminate all fraud — another person can swipe the card; only biometric truly prevents proxy attendance
  • Thinking time keeping is only needed for time-rate workers — piece-rate workers also need time records for overtime calculation and idle time tracking
  • Ignoring late arrival recording as a system requirement — it is explicitly listed as a requisite for maintaining discipline
Reference:
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