As part of a series of implementing competency-based education, this monograph presents guidelines for development and utilization of performance learning modules. The relative merits of individualized modular learning of group instruction are discussed prior to a description of the two basic types of learning modules: self-contained and directional modules. The next section discusses the applicability of various educational tools, including performance objectives, to module-oriented instruction. The functions of each of the seven components of a learning module are then discussed, i.e., the cover page, introduction, list of performance objectives, pre-test, description of learning experiences, post-test, and references. Figures are then presented which indicate the order in which these components should be developed and which provide criteria for evaluating a learning module as a whole as well as its component parts. The final section provides 12 guidelines for the application and management of a module system, including: set content parameters; codify performance objectives; designate delivery strategy; adapt the learning environment; provide faculty and student orientation; purchase commercially available modules, develop a module, or solicit student-written modules; design a monitoring system; set time frames; and continually evaluate and adjust the module. (JP)