This booklet focuses on how to manage a distance learning system so that it maximizes the efficient use of resources while meeting its goals. The management of a distance learning system involves planning, organizing, leading, and controlling. The author focuses on the choice of institutional framework and the funding system; and then describes three major subsystems, the material subsystem involving production of materials, the service subsystem of support for students, and the administrative subsystem for management of tutors. Controlling and assessing outcomes are discussed, drawing on examples from developed countries and developing countries. Distance learning shares a number of management needs with many other enterprises, but this booklet focuses on characteristics that make distance learning needs unique. Most of these traits revolve around the physical separation of components and the tension between the production-oriented nature of the material subsystem and the goals of the student-oriented support subsystem. (Contains 66 references.) (SLD)