The quality of services provided by a public welfare agency is directly related to the competency of its staff, which is, in turn, directly related to agency efforts to recruit and retain personnel and to provide for their continuing professional growth, for staff development. The importance of a staff development program in the agency administrative structure and in coordinating staff effort has been increasingly realized. This publication: (1) presents the organizational problems faced by public agency administrators and staff in expounding and administering meaningful programs, (2) underlines principles suggestive of carrying out administrative response more easily and effectively, and (3) applies those principles to staff development program. The publication is divided into two major parts: (1) a section on organization theory, and (2) a section on administrative aspects of staff development. (BP)