Information for newly appointed heads of graduate departments of psychology is presented as background material for the 1974 Chairman's Workshop. Topics include the following: the budgetary situation, pressures for increased teaching loads, effects upon recruiting faculty, faculty morale, graduate and undergraduate student morale, the intellectual situation, civil liberties, minority groups, the structure of universities, the role of the department head, strengthening the department, the departmental budget, and personal style. It is suggested that the academic world is dominated by insufficient funds to accommodate current levels of activity, much less support expansion, and a rapidly changing intellectual situation that brings special pressures for academic administration. As a result, university administrators are paying more attention to faculty productivity and workload, and psychology appears to be moving from a period of high specialization to the orientation of the generalist. Three levels of administration are considered: the upper or central administration, colleges and schools, and the department. The department head position is examined in relation to the roles of leader, manager, and passive caretaker. Additional concerns include faculty recruitment and appointment; faculty development; salary recommendations; and teacher promotion, tenure, and dismissal. Appended materials include a sample constitution, procedures for reappointment and promotion, and university standards on personnel action. (SW)