This work has been done as part of the effort to plan the National Institute of Education (NIE). The report, one of a series, describes a management plan recommended for the Basic Research Division of the proposed National Institute of Education. The plan was developed following a survey of management practices in a number of federal agencies supporting basic research activity, and incorporates many of the lessons learned through experience with a variety of management policies and practices. The report presents an overview of recommended management activity, the underlying choices that were made in the development of the management plan, and the alternative choices that would have resulted in alternative plans. Also provided is an evaluation of the recommended management plan based on criteria relevant to the quality of the supported R&D and the effectiveness of the management procedures related to required management skills, cost, time, and the ability to attract a supportive constituency. (Author/DN)