Labor Standards
Effective manpower planning is dependent on a knowledge of the labor required
Labor standards are the amount of time required to perform a job or part of a job
Accurate labor standards help determine labor requirements, costs, and fair work
Started early in the 20th century
Important to both manufacturing and service organizations
Necessary for determining staffing requirements
Important to labor incentive systems
Meaningful Standards Help Determine
Labor content of items produced
Staffing needs
Cost and time estimates
Crew size and work balance
Expected production
Basis of wage-incentive plans
Efficiency of employees
May be set in four ways:
Historical experience
Time studies
Predetermined time standards
Work sampling