This booklet is intended to assist managers at all levels and in all types of firms in coaching employees of two types: those with managerial responsibilities or those being developed as managers. The principles and approaches described, however, are applicable to all levels of employees. Discussed in the individual sections of the guide are the following topics: the nature and purpose of coaching; coaching and learning; the context of coaching (who is coached and ways of taking and making coaching opportunities); stages in the coaching process (pre-coaching preparation, identification of improvement areas, procedures for action planning, techniques of progressing an assignment, and ways of rounding off an assignment); and skills involved in coaching (drawing out, attending, giving and receiving feedback, and developing coaching skills). Five figures and 11 checklists are also included. (MN)