Five author contributed chapters explore the social environment of the schools as it relates to mainstreaming handicapped children. M. Reynolds discusses "The Changing Social Environment" in the first chapter. Emphasis is placed on the use of developmental scales in the organization of improved schools. "The Social Integration of Handicapped Students Into the Mainstream" by R. Johnson and D. Johnson examines the rationale for mainstreaming; the processes of making social judgments, accepting, and rejection; self attitudes of the handicapped; and cooperative interaction among and between students and teachers. N. Sprinthall and B. Blum in "Peer and Cross Age Teaching--Promoting Social and Psychological Development in Mainstream Classes" present twelve lessons designed to teach tutoring skills and help tutors process experiences. Suggestions for "Creating Positive Classroom Environments" by R. Hlidek outlines such procedues as group reinforcement and relationship building activities. The final chapter by F. Wood, "Observing Skills for Teachers," deals with the observation of students in complex school environments. (PHR)