An investigation concerning management of faculty at a major research university during 1977-78 was designed to identify and measure costs associated with federal affirmative action or equal employment opportunity guidelines and to analyze the financial impact of the guidelines on the institution. A cost-generating procedure was developed to identify direct and indirect costs, and a collection process was designed to provide primary source data with opportunities for verification at several levels of the organizational structure. Elements of direct and indirect costs included personnel, operating expenses, and capital outlay replacement value. The major compliance costs were associated with selection processes and accounted for approximately 98 percent of the total amount expended at this level and 93 percent of the university total. Direct and indirect expenditures attributed to compliance costs as applied to the management of teaching faculty were approximately one-half million dollars. While this figure represents less than one percent of the university budget, its magnitude is of sufficient size to warrant concern. Suggestions concerning the utility of such data and the need for additional parallel efforts at other institutions are offered. Emphasis is placed upon discussing the need to influence the federal process and the utility of compliance cost data within an institution. (SW)