A procedure for reallocating faculty positions is described that uses credit hour guidelines that are quantitatively established using instructional method as the unit of analysis (rather than academic unit). Formally recognized guidelines for varying instructional methodologies are also applied to actual instructional experiences of academic units to determine credit hour expectations for these units. The proposed procedure is based on the assumption that instructional method and number of students are two of the most crucial elements in the internal allocation process. It is also assumed that any targets for credit hour per full-time equivalent (FTE) teachers represents a compromise between the total resources available to the institution and the instructional methodologies preferred by the disciplines. Four types of instruction and examples of each type are identified: individual instruction; small laboratory, seminar, field work; skill and upper division classes; and regular classes. The appropriate instructional mode for each course was classified, and the number of FTE budgeted faculty and the number of instructional hours taught by graduate teaching assistants and part-time faculty was gathered for each department. For each department and for each mode of instruction, information was gathered on the number of class sections taught, faculty credit hours or total course credit hours taught, number of student enrollments in all class sections, and total student credit hours generated by all class sections. A formula for computing expected student credit hours and entitled FTE faculty for each department is presented. Uses and abuses of the procedure are noted. (SW)