UNDERCOVER INVESTIGATION MAY BE DEFINED AS A DEEP PENETRATION OF THE ENEMY (OR OPPOSITION) AND THE GATHERING AND EVALUATION OF THE INFORMATION WHICH THEN NATURALLY FLOWS. REGARDLESS OF ETHNIC OR RACIAL BACKGROUND, THE GOOD UNDERCOVER AGENT USUALLY POSSESSES CERTAIN BASIC CHARACTERISTICS, SUCH AS A PLEASING, LIKABLE PERSONALITY, A KEEN UNDERSTANDING OF HUMAN NATURE, PERCEPTIVENESS, INTELLIGENCE, A GOOD MEMORY, AND GOOD INDUCTIVE REASONING. TO SELECT QUALIFIED, HONEST AND LOYAL AGENTS, EMPLOYERS SHOULD ADMINISTER A PREEMPLOYMENT POLYGRAPH EXAMINATION WHERE THIS IS LEGAL. OTHERWISE, THE WRITTEN REID REPORT HONESTY TEST SHOULD BE GIVEN. HIRING INHOUSE INVESTIGATORS SUCH AS A POLICE SCIENCE GRADUATE IS PREFERABLE BECAUSE THEY THEY USUALLY HAVE INSIGHT INTO LEGAL CONSIDERATIONS, CAN USUALLY WRITE ACCEPTABLE REPORTS, AND COME ACROSS AS PROFESSIONALS IN COURT, BUT THEY MAY NOT BE ABLE TO 'ROPE' (MOVE AMONG DIFFERENT GROUPS IN THE COMPANY) OR BLEND IN. SMALL COMPANIES SHOULD USE AGENCY INVESTIGATORS, WHO ARE GOOD AT 'ROPING,' CAN USUALLY BLEND IN, AND ARE 'STREET WISE.' THERE IS NO FORMULA TO THE PROPER APPROACH FOR SUPERVISING OR COACHING UNDERCOVER AGENTS BECAUSE EACH SITUATION IS UNIQUE. HOWEVER, GUIDELINES CAN BE SET THAT DICTATE (1) DISCRETENESS IN MEETINGS BETWEEN EMPLOYER AND AGENT; (2) SUPERVISION AND ADVISE IN CASES OF MAKING 'BUYS,' SO THAT THE AGENT KNOWS WHAT IS A LOGICAL BUY TO MAKE; (3) SUPERVISOR DECISIONS WITH REGARD TO INTRODUCING OUTSIDE AGENTS IN ADDITION TO THE INSIDE AGENT: AND (4) COACHING THE AGENT TO AVOID BECOMING IDENTIFIED TOO CLOSELY WITH ANY PARTICULAR PLANT GROUP. NO REFERENCES ARE PROVIDED. (PRG)