The manual was intended to clarify the relationship among annual goals, short-term instructional objectives and performance objectives for special education students in Michigan. An overview of state and federal requirements is followed by analysis of the annual goals (general statements relating to a skill area without specific reference to observable behaviors), short-term instructional objectives (which define each annual goal in terms of the specific skill or behavior the student is to learn), and performance objectives (specific steps leading to completion of the short-term instructional objective). The relationships among the three levels are examined. Questions and answers are followed by appended information, composed largely of sample annual goals, short-term instructional objectives, and performance objectives. (CL)