Each of the three main parts of this report focuses upon a different aspect of the general issue, how best to manage State departments of education. Part I, "The Problematic Framework of State Education Agency Management," deals primarily with some of the major legal, financial, instructional, and social problems facing schools today, and with their implications for educational management. Part II, "Managing State Education Agencies: The Perspective of Professional Management," focuses attention upon the principles of general management and the strategies for achieving desired change in organizations, as developed by specialists in management. Part III, "Planning and Management Strategies of State Education Agencies," examines a variety of specific management approaches developed by several individual States in response to their own particular needs. (Author)