THE PROGRAMME EVALUATION-MANAGEMENT APPROACH DESCRIBED HAS BEEN OPERATIONAL FOR ABOUT 2 YEARS IN THE MARTIN LUTHER RESIDENTIAL SERVICES DIVISION OF THE LUTHERAN SOCIAL SERVICES OF WISCONSIN AND UPPER MICHIGAN. THE DIVISION CONSISTS OF 4 RESIDENTIAL UNITS SERVING APPROXIMATELY 40 ADOLESCENT BOYS AND GIRLS FROM THE MILWAUKEE/MADISON, WISCONSIN AREA. CLIENTS ARE REFERRED BY STATE AND COUNTY SOCIAL SERVICE DEPARTMENTS FOR SPECIAL CARE AND TREATMENT BECAUSE OF SERIOUS SOCIAL ADJUSTMENT PROBLEMS. THE EVALUATION-MANAGEMENT DESIGN ACCENTS BROAD STAFF PARTICIPATION AND CONSENSUAL GOAL-SETTING AND SYSTEMATICALLY INCORPORATES DIVISIONAL, SUBADMINISTRATIVE SERVICE UNITS, STAFF PERFORMANCE, AND STAFF DEVELOPMENT GOAL-SETTING PROCEDURES INTO A UNIFIED PLANNING AND ACCOUNTABILITY SYSTEM. THE CONCEPTS UNDERLYING THIS DESIGN ARE BASED ON TALCOTT PARSONS' FOUR ORGANIZATION FUNCTIONAL IMPERATIVES: QUALITY SERVICE ACCOMPLISHMENT, ORGANIZATIONAL SURVIVAL, INDIVIDUAL STAFF SATISFACTION, AND STAFF SOLIDARITY. IN ADDITION TO CHOOSING OPERATIONAL INDICES FOR THESE FOUR GOALS, MAJOR AREA SUBGOALS ARE DEVISED TO MONITOR EVERY FACET OF THE DIVISION'S OPERATIONS, INCLUDING FISCAL PRUDENCE AND EXPENSE CONTROL, INTERAGENCY OPERATIONS, CLIENT SATISFACTION, AND CLIENT PARTICIPATION. THE BASIC PREMISE OF THIS SOCIAL SYSTEMS-ORIENTED DESIGN IS THE NOTION THAT WITHOUT PROPORTIONAL ATTENTION GIVEN TO SECURING OUTSIDE RESOURCES AND INSURING INTERNAL STAFF MEMBER SATISFACTION AND STABILITY, THE ORGANIZATION WOULD NOT BE CAPABLE OF ACHIEVING ITS FORMAL GOAL ATTAINMENT FUNCTIONS OF BETTER CLIENT TREATMENT SERVICES. IT IS BELIEVED THIS DESIGN PROVIDES A MUCH NEEDED CORRECTIVE TO PROGRAM EVALUATION-MANAGEMENT TECHNOLOGIES THAT FAIL TO ADDRESS THE HUMAN AND SOCIAL DIMENSIONS OF THE ORGANIZATION ITSELF WHEN ASSESSING ITS PERFORMANCE. CHARTS ARE PROVIDED TO ILLUSTRATE THE VARIOUS ASPECTS OF THE DESIGN. SAMPLE FORMS ARE INCLUDED. (RCB)