This manual was developed by a project to create a model program that integrates basic skills instruction with requirements of welfare reform, and the project's final report describes activities taken to develop the manual. The report details the problem, goals, procedures, objectives met and not met, and an evaluation. The manual is designed to assist adult literacy providers in Pennsylvania to integrate basic skills instruction with the requirements of welfare reform as a post-employment strategy to enable the learner to retain or advance in employment. Section 1, Changes in Welfare Legislation, presents the most current information on welfare reform and describes allowable work activities. Section 2, Types of Services Needed, discusses barriers to employment; creating a hiring environment; post-employment services; and other post-employment services, such as mentoring programs and support services. Section 3, Client Flow--Program Delivery, presents a student flow chart and describes what role the service provider must play in each phase of program delivery. Section 4, Program Design--Models of Curriculum, addresses how adults learn best, employer's expectations/employee's self evaluation, common denominations of exemplary programs, and elements of a successful curriculum. Three curricula are provided: job readiness, job placement, and basic skills. Section 5 provides supplemental information and forms for Sections 2-4. Section 6 is a 14-item bibliography. (YLB)