PERSONNEL MANAGEMENTIn Interior Design Michelle Egan

Personnel Management

HRM (Human Resources Management) Ensures a “fit” between the

management of an organization’s employees and the overall strategic direction of the company.

Areas of Personnel Management: Job Classifications Job Descriptions Performance Evaluations Employee Handbook Compensation Fringe Benefits

Personnel ManagementJob Classifications

Principle

Design Director

Project Manager

Project Manager

Project Manager

Designer Designer Designer Designer Designer Designer

Design Assistant Design Assistant Design Assistant

Owner/ President of design firm.

First level of management:

-Administrative duties-Marketing

-Design

Second level of management:-Lead designer

-Meets with clients-Administrative management in

projects

Gather information on projects, client interviewing,

drafting, specs.

Drafting, board preparation, specs,

library maintenance.

(CAD operator, space planner, specification writer, estimator, renderer, business development specialist)

Personnel ManagementJob Descriptions

Organize and control growth, organize work in the office and keep work on track. Should be provided to both new and existing employees –

know what qualifications and skills required of higher-level positions.

Specific enough to differentiate between individuals; broad enough to allow manager flexibility in hiring.

Communicates qualifications, skills,

and responsibilities of each job classification

within the firm.

Personnel ManagementJob Descriptions

Responsibilities: Detailed enough so individual knows what’s

expected of them. Qualifications:

Minimal education requirements and work experience requirement in years.

Skills: Statements regarding technical abilities or

abilities of a specific nature. Should correlate with responsibilities and

qualifications.

Personnel ManagementPerformance Evaluation

Systematic evaluation of the positive and negative work efforts of an

employee.Should be designed to do the following: Encourage the development of employees. Aid the employer-employee relationship. Determine compensation increases,

promotions, and dismissals. Aid human resource planning. Protect the employer from false claims by

employees.

Personnel ManagementPerformance Evaluations

EMPLOYER: •Thought of as a “dreaded chore,” time consuming process.•Lack of training or experience in the performance evaluation process.•Quick & easy informal mental review often used – manager’s subjective opinions rather than objective evaluations of the employee’s performance based on the responsibilities of the job.

EMPLOYEE:•Usually used solely to determine compensation increases, rather than to assist in the development and training of employees.•Anxiety producing, negative time period.•Can be used as only negative criticism – punishment of past performance.

EMPLOYER:•Decreases employee lawsuits with regard to discrimination, harassment, and unfair termination.•Protection in case employee files a formal grievance – credible documents places in employee’s personnel file.•Makes time for a thorough evaluation of employees and their current standings.

EMPLOYEE:•Lets employee know their standing in the company based on the responsibilities expected of them.•Aids in the development of the employee.•Tells the employee where he or she can likely progress in the future and how to advance there.

Personnel ManagementThe Employee Handbook

To provide owners, managers, and employees with a concise reference regarding the

company’s policies. How to prepare a handbook…

Owner creates, may ask input from employees. Be precise; include “unwritten rules” that the company already abides

by and determine their validity to include in the handbook. Clear and concise, short and simple; meant to inform employees.

What to include… Begin with purpose of handbook and the reason for it’s development,

followed by policy statements for each category. Never really finished; owner/manager should keep up to date.

Written policies help clarify how things are done and where employees stand in their relationship to the firm.

Personnel ManagementCompensation

Any kind of payment made to an employee for work performed.

Straight SalaryFixed amount of salary

to the employee no matter how many hours in the week he or she works; normal work week is 35-40hrs, no

overtime.Compensatory Time

Time off during the normal work week that makes up for the overtime employee has

worked.

CommissionWhen designers are

involved with the selling of products; paid a

percentage of the gross, net sale, or gross margin of the merchandise sold,

or the amount of the contract.

Gross MarginDifference between the selling price and the cost price of the good or services being sold.

Hourly WageThe employee is paid

some rate for ever hour that he or she

works.

Uncommon for regular, full-time employees, usually only used to compensate entry-level employees.

Gross Salary – the amount of employee compensation before tax deductions.

Incentive Compensation: Merit pay – reward for quality work, added to annual compensation.

Bonus plan – extra compensation to employees based on producing more than a specific quota.

Personnel ManagementFringe Benefits

Non-wage compensations provided to employees in addition to their normal wage

or salary.Directly to employees: paid vacations, paid holidays,

group health insurance, employee discounts on purchases, group life insurance, supplemental

health insurance (dental, paid sick leaves, profit-sharing plans, professional-growth benefits).

Paid by employer: social security tax contributions, worker’s compensation tax, unemployment

insurance tax.