The problem examined in this project centered on developing a transferable methodology for the creation and implementation of personnel policies in organizations whose polices are inadequate or do not exist. Many grass-root organizations do not have effective personnel policies that encourage employees to enhance organizational performance. Yet, grass root organizations, such as “group homes” for the mentally and physically disabled, provide very effective care and habilitation to residents at a fraction of the cost of large state run facilities. Such was the situation with a group home system that I had the privilege of working with. The care of the residents was directly related to the effective management of the organization, which at the time, was inadequate by any standard. This project was completed to satisfy two major goals. First, to research, develop and implement an effective set of personnel policies in the group home studied. Second, to formulate a transferable methodology for developing and implementing effective personnel policies for small-grass root organizations such as group homes. One of the ideals that the American College of Healthcare Executives is founded upon is that effective management of health care systems has a significantly positive impact on patient care delivered in those systems.