This document is intended to promote understanding of performance standards in Job Training Partnership Act (JTPA) and Employment Service (ES) applications; to promote more appropriate use of performance standards in managing and overseeing job training and job placement programs at the state and local levels; and to foster the integration of the job training and job placement systems through performance management. Those purposes are outlined in the first section. The second section provides a history of the development of performance standards in the JTPA and ES systems and states some important principles underlying the approaches developed to support performance management in those systems. The third section outlines the mechanics of using performance standards. The next section is devoted to major criticisms of performance standards, involving both conceptual and technical issues. The document's narrative concludes by stating some directions for the future and calling for increased coordination between job training and job placement. Appendix A presents the key components of the JTPA performance standards system. Appendix B shows adjustment model factors for program years 1986 and 1987. Appendix C is a 12-item annotated bibliography. (CML)