In this examination of problems relating to the evaluation of administrator performance, the author divides this topic into three categories: designing, implementing, and evaluating a system for administrative performance evaluation. He asks a seemingly simple question, "Should a system be designed which takes into consideration the reality of the situation?" and points out that the answer to this question is basic to any system of evaluation. In addition to outlining general principles of evaluation and discussing the collection of evaluation data, the author deals with the purposes and payoffs of administrator evaluation, with who will develop the plan of implementation, with some of the legal and ethical problems of administrator evaluation, and with problems regarding the reinforcement and support of the evaluation system. He advocates that any administrator performance evaluation system be cyclical, rather than linear. (Author/DS)