The document discusses different methods for observing children, including running records, diaries, checklists, and anecdotal observations. Each method has advantages and limitations, so it is important to select the appropriate method based on the goal of observation. Checklists are good for large groups but may not capture confidence levels, while anecdotal observations recorded by parents can help keep files updated but may not be objective. The key is choosing a method suited to the purpose of understanding a child's development across physical, intellectual, emotional and social domains.