The Division of Compensatory Education, Program Support Branch of the Bureau of Elementary and Secondary Education, Department of Health, Education, and Welfare, Office of Education, has prepared this handbook to assist in developing skills in performance objective development for Title I programs. This handbook develops the concepts and skills necessary to analyze and write performance objectives. The five chapters of this hand book discuss legal requirements, program development processes, target populations, performance objectives, and end-product evaluation and performance objectives. An Appendix includes exercises pertinent to each chapter, a schematic representation of the program development process, and an outline of the text for writing performance objectives. Exercises and examples related to Title I are included in the handbook, using techniques that provide for continuous self-evaluation of the skills of performance objective writing. Use of this handbook does not insure that project personnel will become experts, but they are expected to understand performance objectives sufficiently to write them in project applications. (Author/JM)