HISTORICAL MODELS OF ORGANIZATIONAL DESIGN ARE REVIEWED, WITH REFERENCE TO THEIR EMPHASIS ON FORMAL, HIERARCHICAL STRUCTURES AND CLEARLY DELINEATED LINES OF AUTHORITY AND FUNCTIONAL RESPONSIBILITY. OLDER MODELS OF ORGANIZATION AND MANAGEMENT WERE SUFFICIENT FOR SMALL AGENCIES OPERATING IN STABLE COMMUNITIES, BUT THEY CANNOT MEET THE NEEDS OF CONTEMPORARY HUMAN SERVICE AGENCIES WORKING IN TURBULENT ENVIRONMENTS. CONTEMPORARY ORGANIZATIONAL THEORIES APPLICABLE PRIMARILY TO PROFITMAKING ORGANIZATIONS ARE ADAPTED TO THE HUMAN SERVICE CONTEXT. EMPHASIS IS PLACED ON THE FUNCTIONS OF EVALUATION IN AN 'OPEN SYSTEMS' ORGANIZATION--I.E., ONE THAT IS CONTINUALLY IN TRANSACTION WITH ITS SURROUNDING ENVIRONMENT. WAYS IN WHICH EVALUATION IS USED BY MANAGERS AS A MECHANISM FOR INTERNAL INTEGRATION, CONFLICT RESOLUTION, FEEDBACK AND ADAPTATION, AND BOUNDARY CONTROL ARE DISCUSSED. (BOUNDARY CONTROL INVOLVES MAINTAINING AN APPROPRIATE BALANCE BETWEEN AN ORGANIZATION'S EXTERNAL AND INTERNAL AFFAIRS.) THE PROCESSES OF MANAGEMENT, INFORMATION SYSTEMS, ACCOUNTING, AND EVALUATION ARE MEANS TO ACHIEVING PRODUCTIVITY, EFFICIENCY, AND EFFECTIVENESS. GREATER PRODUCTIVITY AND EFFICIENCY ARE LIKELY TO EMERGE FROM MANAGEMENT SYSTEMS WITH FLEXIBLE, NONHIERARCHICAL STRUCTURES IN WHICH INFORMATION FLOW AND EVALUATION RESULTS PROVIDE MUCH OF THE BASIS FOR ORGANIZATIONAL CONTROL AND DECISIONMAKING. MANAGERS OF LARGE, COMPLEX AGENCIES ARE URGED TO PROMOTE TASK ACCOMPLISHMENT, PRODUCTION EFFICIENCY, AND PROGRAM ACCOUNTABILITY TO AVOID RIGID CONTROL PROCEDURES THAT LEAD TO DETERIORATED MORALE AND DECREASED RESPONSIVENESS TO THE CHANGING NEEDS AND DEMANDS OF CLIENTS AND THE COMMUNITY. THEY ARE URGED TO PLAN AND IMPLEMENT PROGRAM EVALUATION WITHIN THE BROADER CONTEXT OF ORGANIZATIONAL STRUCTURES AND MANAGEMENT PROCESSES. A LIST OF REFERENCES IS INCLUDED. (LKM)