Importance Or Needs Of Labor Cost Control

The need of labor cost control arises to fulfill the following purposes.

* Labor cost control is important to make economic utilization of labor force in production process.
*Labor cost control is important to obtain maximum quantity of output with the least amount of materials and other resources.
* Labor cost control helps to obtain better quality output with the least effort and time of workers.
* Labor cost control reduces the cost of production of products manufactured or services rendered.
* Labor cost control ensures the satisfaction of the workers by creating a good working environment in the factory.
* Labor cost control helps to adopt the fair system of wage payment and to minimize labor turnover.
* Labor cost control is helpful in minimizing wastage of materials by workers , idle time and unusual overtime work.
* Labor cost control is helpful to maintain safety working environment.
* Labor cost control is important to keep complete records of the employees and to supply information to the management regarding availability, efficiency, utilization and absenteeism of the workers.
* Labor cost control is very useful to increase the profitability and competitiveness of the organization.