When you change someone's time off balance manually, either by increasing it or decreasing it, whether you can do this in hours or in days is determined by the policy settings.
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If the policy is set to days, to enter a part day you must enter the amount as a decimal. If the policy is set to hours, to enter a full day you enter the hours based on the working hours per day for their time off policy.
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You can then see the working hours per day at the top.
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Once you know the employee's working hours per day, you need the following calculation.

If an employee's default working day is 7 hours, this means 7 hours equals 1 day. Half a day would be 0.5

If you want to increase their time off balance by 3 hours, you would divide 1 by 7, then multiply it by 3.

(1 ÷ 7) x 3 = 0.428571

The amount of decimal places you enter is affected by what you have set in Settings > General > Number of digits shown after comma.

If set to 4, instead of entering 0.428571 when changing the balance, you would enter 0.4286.

Below is an example of what 7 hours as decimals would look like in a calculation. You would then need to round up relevant to your number of digits settings.