A school board must operate in such a way that it can cope with the increasingly larger size, complex organization, and sophisticated programs of schools. The relationships among the community, board, and school can be viewed as component parts of a system. Formal and informal lines of communication exist among these parts--between the community and the board in the form of elections, reports, tax levies, and the like; between the community and the school through the board; and between the board and the school through the administrative staff. Each part has its function in the organization. The board sets objectives for the system. The board and administrative staff sets budgets, formulate policies, and make rules. All levels are involved in the evaluation of the school programs. The board must develop two kinds of objectives for the school system--general (a philosophy of education) and operational (specification of the general objectives). The board has the responsibility for decisions to meet these objectives. In this area the board's role includes policy making, rules, budgets, maintaining consistency with administrative decisions, and evaluation of programs on the basis of administrative reports. (HW)