AN ATTEMPT IS MADE TO DISTINGUISH BETWEEN WHAT APPEAR TO BE TWO DIFFERENT, BUT RELATED, DEFINITIONS OF NEEDS ASSESSMENT. THE DISCUSSION TAKES NOTE OF THE FACT THAT ADMINISTRATORS AND POLICYMAKERS RESPONSIBLE FOR ALLOCATING RESOURCES HAVE A VIEW OF NEEDS ASSESSMENT THAT DOES NOT NECESSARILY COINCIDE WITH THAT OF PROGRAM MANAGERS WHO ARE PRIMARILY CONCERNED WITH THE ACTUAL DELIVERY OF ADEQUATE AND EFFECTIVE SERVICES. THE CONCEPTUAL PROCESS OF NEEDS ASSESSMENT IS CONCERNED WITH CLARIFYING THE PURPOSES AND SUBJECTS OF THE NEEDS-ASSESSMENT ACTIVITY, DETERMINING WHEN A NEED EXISTS, AND EVALUATING THE ABILITY OF EXISTING SERVICES TO ADDRESS IDENTIFIED NEEDS. NEEDS ASSESSMENT INVOLVES A SEQUENCE OF SIX STEPS: (1) SELECTING UNITS AND TOPICS FOR ANALYSIS; (2) SELECTING ONE OR MORE METHODS FOR GATHERING DATA; (3) GATHERING DATA/GENERATING INFORMATION; (4) IDENTIFYING UNACCEPTABLE SOCIAL OR HUMAN CONDITIONS; (5) COMPARING OBSERVED CONDITIONS TO EXISTING SERVICES. AND (6) RECOMMENDING CHANGES IN EXISTING SERVICES. THE MORE PRACTICAL ISSUES RELATING TO THE IMPLEMENTATION OF NEEDS ASSESSMENT ARE NEXT EXPLORED. EVALUATING AN ORGANIZATION'S 'READINESS' TO ENGAGE IN SUCH AN EFFORT IS DISCUSSED, ALONG WITH SOME GUIDELINES FOR INITIATING MULTIAGENCY PROJECTS. THE FINAL CHAPTER REVIEWS SEVERAL METHODS OF GATHERING NEEDS-ASSESSMENT DATA, DISTINGUISHING BETWEEN THOSE THAT MAKE USE OF EXISTING DATA AND THOSE THAT IMPLY THE COLLECTION OF NEW DATA. AN ATTEMPT IS ALSO MADE TO LIST THE SOURCES OF NEEDS-ASSESSMENT DATA. SINCE IT WAS NOT POSSIBLE TO ADDRESS ALL THE TECHNOLOGICAL QUESTIONS THAT NEEDS ASSESSORS MIGHT RAISE WHEN DESIGNING THEIR PARTICULAR STUDIES, A BIBLIOGRAPHY ARRANGED BY TOPIC HAS BEEN PROVIDED. IN ADDITION, THE NAMES AND ADDRESSES OF EIGHT MINNESOTA-BASED ORGANIZATIONS THAT CAN PROVIDE CONSULTATION AND TECHNICAL ASSISTANCE ARE LISTED. (AUTHOR ABSTRACT MODIFIED--DJM)