Every organization has employees, and often when there are large number of employees, the organization prefers categorizing them into different types. These "types" care generally categorized based on the organizations' dependency on/expectation from the employees, in terms of their work.
Namely, organizations define employees into following types:
- Full time
- Part time
- Contract worker
*There may be more such "types" an organization may label employees as, depending on their requirements.
How does it help by categorizing employees into "types"?
When an organization formulates policies for their work force, it helps define different policies for different types of employees. By recognizing one as a "type" of employee, organization can delegate these policies more appropriately.
Besides this, it also helps in employee database management. When carrying out regular HR operations like time and attendance monitoring, processing payroll, etc., the employee types can be a convenient way of filtering employees.