This handbook is designed to help educators understand program evaluation processes so that they will be able to carry out evaluation tasks and talk knowledgeably to evaluators about what they want to find out from a program evaluation. The book reviews the purposes and uses of evaluation to help the reader identify the scope and direction of the evaluation process. Section 3 introduces the strategic steps in an evaluation and gives practical suggestions to avoid pitfalls. The 10 basic steps to program evaluation are delineated: (1) identify program goals; (2) state objectives; (3) decide on the scope of the evaluation; (4) formulate evaluation questions; (5) design the evaluation; (6) choose the method of information collection; (7) list evaluation activities and establish a timeline; (8) estimate the cost of the evaluation; (9) collect, analyze, and interpret the data; and (10) communicate and act on the evaluation findings. How to report and use findings is reviewed, and a glossary of evaluation terms is included. (Contains 26 references.) (SLD)