The information presented in this guide focuses on the knowledge, skills, values, and attitudes needed for effective personnel management in day care settings. Information included in this publication came from the suggestions of day care directors who participated in Training for Child Care Project workshops on administration, as well as from selected readings and source materials. Chapter 1 presents a brief overview of the guide, identifying four key areas to be addressed: (1) the nature of day care and child development and the way employees are organized and used, (2) management practices designed to instruct or govern the employer/employee relationship, (3) general awareness of styles of management, as well as specific concepts related to supervision and motivation of staff, and (4) external social and economic factors which influence day care work and emPloyees' views of their work life. Chapters 2 through 8 present detailed information on: laws relating to personnel matters; developing written policies and procedures; salary plan; employee benefit programs; selection of staff; supervision; and employee motivation. Appendices contain a sample statement of goals and objectives, a suggested outline for a parent policy handbook, outlines of topics to be included in an operations manual and in the personnel policies and procedures of a day care program, sample job descriptions, and sample employee evaluations. (JMB)