How does auto shift assign work?

Auto Shift Assign will automatically assign the employee to the appropriate shift based on the closest punch time.
As an example, if there are two shifts:
First shift is from 7 a.m. to 3 p.m,
General shift is from  10 a.m. to 5 p.m.
If an employee punches IN at around 10 am then he will be assigned general shift automatically.