This report defines the functions of computer-managed learning (CML) as (1) test generation, correction, and analysis; (2) record keeping and reporting; (3) routing learners through a set of learning activities; and (4) charting learner progress for a variety of purposes. It then describes the hardware characteristics and configuration of three types of CML systems, including a stand alone system (the basic model), the timesharing system, and the distributed system, together with such additional devices as printers, digital pads or graphics tablets, touch sensitive screens or lightpens, mark sense readers, and videodisc, videotape, and other instructional media. The five major software programs required to fulfill the four functions are also described--a supervisor program and the registration, testing, prescription, and scheduling modules. The use of CML for the four functions noted in the definition is then detailed. Other factors that may present problems in implementing CML are also discussed, including cost, size of the learning program, accessibility, security, inappropriate use of computer testing, organizational issues, staff knowledge and skills, teacher attitudes, and isolation of learners. Guidelines and a checklist are provided for the selection of a suitable system and several available systems are described. Key factors in the successful implementation of a CML system and a brief consideration of the future of CML conclude the report. Six figures and a glossary of terms are included. (31 references) (EW)