Fixed worktime with presence-checking clock or flexible worktime

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Generally speaking, we work 5 days a week and 8hrs a day in the place I live. There r 2 ways of checking the states of presence. Which one do you prefer? 1. There is a clock in the office which is used for presence-checking. Every employee has a card with his name on it. We leave a mark on the card by put it into the clock when arrving at and leaving from the office. After a month, the administer will check and send penalty to whom with absence and late records. 2. There is not any machine to check the absence. Every emplyee work flexibly. For example, if we r late for 10 minutes in the morning, then we work overtime for 10 minutes in the afternoon. Of course, the administer will sent penalty to the person who is absent without asking for leave too.