THE FEDERAL GOVERNMENT TRADITIONALLY HAS BEEN CONCERNED MORE WITH THE EFFICIENCY OF ITS PROGRAMS THAN WITH PROGRAM EFFECTIVENESS IN ACHIEVING SOCIAL GOALS. EVALUATION ACTIVITIES TENDED TO CONCENTRATE MORE ON MONITORING THE PROGRESS OF THE ACTIVITIES UNDERTAKEN IN THE PROGRAM THAN ON THE QUESTION OF THE APPROPRIATENESS OF THOSE ACTIVITIES IN REACHING SOCIAL OBJECTIVES. AS PRESSURES ON GOVERNMENT TO SOLVE SOCIAL PROBLEMS HAVE MOUNTED, THE IMPORTANCE TO POLICY PLANNING OF KNOWING ABOUT PROGRAM EFFECTIVENESS HAS BEEN RECOGNIZED. CONSIDERABLE EMPHASIS IS BEING PLACED ON RELATING EVALUATION ACTIVITIES TO POLICY CONCERNS OF AGENCIES. EVALUATION IS VIEWED AS SUCCESSFUL IF IT MAKES POSSIBLE OBJECTIVE JUDGMENTS ON ECONOMIC AND SOCIAL COSTS AND EFFECTS OF NATIONAL PROGRAMS AND LOCAL PROJECTS AND IF IT FACILITATES DECISIONS ON RESOURCE ALLOCATION, PROGRAM DESIGN, AND IMPLEMENTATION. EVALUATION ACTIVITIES WITHIN DHEW ENCOMPASS PROGRAM IMPACT EVALUATION, PROGRAM STRATEGY EVALUATION, AND PROJECT EVALUATION. THE OFFICE OF THE ASSISTANT SECRETARY FOR PLANNING AND EVALUATION IS RESPONSIBLE FOR THE DEVELOPMENT AND COORDINATION OF EVALUATION ACTIVITIES. ALSO INVOLVED IN EVALUATION ARE FEDERAL AGENCY OFFICES OF PROGRAM PLANNING AND EVALUATION. ALTHOUGH SUBSTANTIAL EVALUATION RESOURCES HAVE BEEN AVAILABLE FOR ONLY 2 OR 3 YEARS, THERE HAS BEEN CONSIDERABLE EMPHASIS ON BUILDING STAFF CAPABILITY AND DEVELOPING TECHNICAL EXPERTISE. EVALUATION RESULTS PERTAINING TO SOCIAL SERVICES, HEALTH, EDUCATION, EARLY CHILD EDUCATION, AND IMPACT AID ARE DISCUSSED. AN EXAMPLE OF POOR EVALUATION IS CITED. (DEP)