This handbook was designed to assist practicing vocational educators in planning and preparing performance measures for evaluating the behavioral outcomes of instruction. It is particularly concerned with fulfilling the needs of individuals involved in manpower development and training programs. The nature of and need for performance testing is discussed. Various stages in the development of a work-sample performance test are delineated, and alternative approaches to performance testing, including the paper-and-pencil test, are comparatively considered. Attention is given to the advantages and disadvantages of each type of testing. The appendix covers a wide range of skills and occupations in its sampling of performance tests, most of which are accompanied by identifying information and instructions for administration and scoring. An extensive bibliography is included. (PR)