A review focused on impact of the 1978 Comprehensive Employment and Training Act (CETA) amendments in improving sponsor's employability development systems and transition performance. Fifteen prime sponsors in 10 states were visited. Files of 1135 participants were reviewed; 478 were interviewed. Sponsor and Employment and Training Administration officials were also interviewed. Prime sponsors were found to have difficulty moving participants into unsubsidized employment. Problems include not providing needed supportive services, entry-level job skills, or remedial skills and not placing participants in activities related to their occupational goal or not addressing their physical or mental handicaps. Prime sponsors had not fully implemented their employability development systems. Their employability plans lacked basic information about the applicant, omitted planned CETA activities, or did not address transition. They often failed to follow plans or to review and revise them. Little emphasis was given to improving employability development systems. Low priority was given to preparing employability plans and to employability development. Recommendations called for stressing effective employability development systems, training sponsor's staff in employability development systems, and improving technical assistance and monitoring. (Appendixes include review methodology, position paper on management systems for employability development, and an initial and revised plan.) (YLB)