This report discusses the nature of performance objectives and how they may be classified. Ways in which performance objectives may be used in improving instruction are elaborated on in sections on: (1) stating subject-matter and higher goals as performance objectives, (2) taxonomic classification of performance objectives, and (3) limitations and advantages of performance objectives. The report focuses on the interrelationship of instructional purpose, student behavior, conditions under which the behavior is to occur, and minimal criteria of acceptable performance. A bibliography is included. (RL)