What is the general principle behind the calculation of overtime wages in India?

In India, overtime wages are calculated at double the usual rate for any work done beyond 9 hours in a day or 48 hours in a week.

Explain the impact of overtime work on worker productivity and costs.

Overtime work affects productivity negatively.

• Worker fatigue reduces efficiency.

• Higher wage rates increase costs.

• Extra expenses from supervision arise.

Fill in the blanks: Overtime work should be authorized by ___, and a list of required workers must be prepared by ___.

The works manager; the foreman

True or False: Overtime work is generally encouraged in all situations to meet production demands.

False. Overtime should be avoided as much as possible due to increased costs and potential decreases in productivity.

What are the two main elements of overtime costs?

The two main elements are the normal cost and the overtime premium.

Riddle: I am a time when workers work beyond their hours, often at a higher pay, but can lead to fatigue and reduced efficiency. What am I?

Overtime

Describe how idle time is classified and why it is significant in labor cost management.

Idle time impacts labor costs significantly.

• Normal idle time occurs due to factors.

• Abnormal idle time is controllable.

• It affects overall productivity and costs.

What steps can be taken to control overtime work effectively?

Control overtime work effectively.

• Ensure normal output first.

• Prepare justifications for overtime.

• Compare rates during overtime hours.

Fill in the blank: Labor productivity is measured as the amount of real GDP produced per ___ of labor.

Hour

Short answer: What factors contribute to the growth in labor productivity?

Growth in labor productivity depends on savings and investment in physical capital, advancements in technology, and improvements in human capital.

What role does the payroll department play in managing labor costs?

Payroll manages labor costs effectively.

• Calculates employee earnings accurately.

• Prepares essential payroll records.

• Ensures timely payments to staff.

True or False: Piece-rate systems guarantee a minimum wage for workers regardless of output.

False. Piece-rate systems do not guarantee minimum wages, as earnings depend directly on the quantity produced.

Explain the distinction between job evaluation and merit rating.

Job evaluation sets pay scales.

• Evaluates job worth objectively.

• Determines salary structures fairly.

• Essential for equitable compensation.

Riddle: I record hours worked and track attendance, ensuring payroll is accurate for each worker. What am I?

Timekeeping system

What is the significance of controlling idle time in a manufacturing environment?

Controlling idle time is crucial to minimize labor costs, optimize productivity, and ensure effective utilization of resources.