In developing a rationale for the reorganization of educational institutions, the author examines the fallacies inherent in current organizational practice and discusses the potential advantaged of differentiated staffing, particularly in terms of improved teacher morale, increased teacher effectiveness, and decreased teacher turnover. He presents and describes the Temple City Model (a plan based on a hierarchy of differentiated teaching responsibilities rather than on a hierarchy of learning) and stresses its adaptability to existing school systems. Among the areas of responsibility differentiated by the Temple City plan are instructional management, which features an advanced teacher as a learning engineer, curriculum construction, which adds to a teacher's responsibilities emerging curricular theory and design by discipline structure; and advanced skills in the practical application of research for the improvement of instruction. Among the advantages the author sees in this type of differentiated staffing are the decentralization of decisionmaking, the creation of new and more autonomous teacher roles which produce organizational inequality and increased flexibility, and the establishment of new career patterns and incentives for teachers according to their individual talents and development. (JS)