In addition to reporting on the technology of needs assessment and evaluation, these guidelines examine the context in which certain technologies should be employed, the opportunities/limitations of different methodologies, and the rationale for assessing needs and evaluating. The guidelines, intended for personnel at various levels and different stages of program development, are aimed at improving current practices and assisting in the establishment of new program practices. The first of six sections deals with the current state of the art--how needs assessment and evaluation are currently being done. The second section analyzes a series of issues as well as enabling and inhibiting factors in the mental health field and their relationship to continuing education. In the third section the report develops operational definitions for the terms needs assessment and evaluation for continuing education in mental health and describes the consequences of lack of definition. Section 4 discusses and analyzes a series of models for needs assessment and evaluation for continuing education in mental health and their use in various settings. The fifth section suggests strategies for conducting evaluations. The final section presents recommendations for needs assessment and evaluation. (Documents on the following aspects of continuing education in mental health are also available: state level programs for preparing and using mental health manpower in state agencies [CE 019 192], sanctioning and credentialing [CE 019 195], and financing [CE 019 196].) (CSS)