This module is the second of 10 in the Essential Communication and Documentation Skills curriculum. It develops observation, a workplace literacy skill identified as being directly related to the job of the direct care worker. The curriculum is designed to improve the competence of New York State Division for Youth (DFY) direct care staff using contextualized workplace learning materials. The preface and introduction provide information on the curriculum's structure, how to use the curriculum, and how to implement the program. The module is divided into seven sections. The design cover sheet gives an overview of the module design: purpose, methods, performance objectives, and evaluation procedures. The preparation cover sheet lists the following: physical setting, equipment and supplies required, media support, necessary participant materials and handouts, instructor's materials and preparation steps, and options or variations in delivery. The presentation overview lists the method, purpose, and estimated time for the following activities: introduction to observation, observing environmental factors--the safety and security of residents, strategies and guidelines for observing the environment, the power of personal cues--nonverbal communication and observation, observing human factors--the safety and security of residents, DFY youth and nonverbal communication, acting out, and summary and closure. The presentation guide for the trainer is a comprehensive and detailed guide for the delivery of the module activities. Flipchart masters are followed by supplemental notes and materials for the trainer. A participant materials section provides a packet of materials each participant should receive. (YLB)