A 1982 revision of a 1972 publication, this handbook aims to provide a process that school boards can use to evaluate management performance and set administrator salary and compensation schedules. Following a brief introduction, the first two sections note the problem of public criticism of school administrator salaries and review several suggested formulas for setting administrative salaries. The third section outlines the School Management Appraisal Rating Technique (SMART) plan. SMART is a multistep process, using evaluation teams and rating scales, that includes administrative position descriptions, an organization chart, determination of each position's level of responsibility and salary range, job performance appraisal criteria, and board-established management objectives. Sample forms and scales are depicted. Guidelines for developing superintendent compensation plans are presented in the fourth section, while the fifth section reviews compensation plans in three Pennsylvania districts: West Chester Area School District, Saucon Valley School District, and Colonial Northampton Intermediate Unit. Twenty-four graphs in the final section provide statewide data on school managers' salaries. (Author/RW)