The development of this management system begins with an exploration of what the library is attempting to achieve. After an investigation of the hierarchy of library objectives, it is concluded that the one objective which satisfies a set of specified criteria is to maximize the expected future exposure of university community members to documents given current and anticipated future expenditures. A measure of performance utilizing the concept of item-use-days is developed to evaluate the degree of attainment of this objective. Finally, the difficulties encountered in constructing an effectiveness measure to make year-to-year or interlibrary comparisons are explored. The Planning-Programming-Budgeting System is presented as a rational framework for the management of university libraries. Library activities are classified according to four different dimensions. A typical program structure is enumerated utilizing these dimensions. Benefit-cost analysis is discussed as a means for determining an effective allocation of the library's resources. It is shown that resources are allocated and utilized in the most effective manner when the marginal benefit-to-cost ratios for all elements of all programs are equal. Guidance is also offered for the development of a statistical information system to support the decision-making and planning process. (Author/NH)