An industrial study group was contracted to perform a systems analysis of institutional training conducted under the Manpower Development and Training Act (MDTA) of 1962, as amended, in order to: (1) illuminate management decisions in the areas of program priorities, alternative methods of administration, and allocation of resources, and (2) provide information for the development of guidelines and administrative procedures under such new manpower legislation as may be enacted by Congress. The study, conducted during the latter half of 1970 and the first quarter of 1971, covered program management at the national level and a field study of the 10 regional offices and 12 selected states. The study group list of weaknesses included divided authority, diffuse organization, and too many guidelines. As a result the group's primary recommendation was a major change in program administration, involving decentralization of program control to the states. Extensive findings, conclusions and recommendations are included. (CD)