This digest discusses the issue of school-based management (SBM), defined as a system of administration in which the school is the primary unit of educational decision making. Responsibility for certain decisions about the budget, personnel, and the curriculum is placed at the school level rather than the district level. Several aspects of SBM are covered in question-and-answer format: (1) What are some of the advantages of SBM? (2) How does SBM affect the roles of the school board, superintendents, and district office? (3) How are the budget decisions made? (4) How are the decisions made at the school level? (5) What is necessary when implementing SBM? and (6) What are the liabilities of SBM? Appended are 10 references. (SI)