The various elements of the management approach to tertiary education (broadly, all institutions of further and higher education maintained by local authorities) are identified, with the principal focus on the general approach known as "Management by Objectives" (MBO). The arguments for and against its use and possible hazards following adoption of the approach are presented. This guide contains the following seven chapters: (1) applying the managerial approach to tertiary sector colleges; (2) establishing the aims and objectives of the college; (3) setting objectives for individuals; (4) staff development; (5) performance appraisal; (6) evaluating the managerial approach; and (7) the future of the managerial approach. Emphasis is put on the present lack of an adequate conceptual base for MBO and related approaches, the variety of possible schemes, the importance of 'tailoring' the design to fit the particular organizational conditions at the time of implementation, and the dangers involved in proceeding either too quickly or too slowly. (SPG)