PERSONNEL MANAGEMENT In 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 Management Job Classifications Principle Design Director Project Manager Designer 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 Management Job 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 Management Job 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 Management Performance 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 Management Performance 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 Management The 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 Management Compensation Any kind of payment made to an employee for work performed. Straight Salary Fixed 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. Commission When 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 Margin Difference between the selling price and the cost price of the good or services being sold. Hourly Wage The 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 Management Fringe 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.