Management is concerned with the conception and choice of goals. A manager must first determine his own goals within the framework of overriding organizational objectives and limitations. Second, a manager must determine what methods he will use to achieve his goals--on the basis of cost-benefit comparisons. Third, the manager must design his specific management plan, which must include a monitoring system that permits him to observe and respond to any deviations from the original plan. Educational preparation is a critical factor in the development of effective managers. First, managers must develop analytical ability and learn to treat knowledge and perceptions in a problem-oriented fashion. Second, managers must learn to interpret ideas creatively. Third, managers must have the ability to lead and motivate people. Fourth, managers must be able to understand and organize information flow. Fifth, managers must understand how to delegate. Educational management is often hindered by political considerations and other noneducational factors. Also, in the operational area of education, it is extremely difficult to measure cost effectiveness. However, the lessons of business administration and factory management are still largely applicable to educational management. (Author/JG)