This module is one of a series of more than 125 performance-based teacher education (PBTE) learning packages focusing upon specific professional competencies of vocational instructors. The competencies upon which these modules are based were identified and verified through research as being important to successful occupational teaching at all levels of instruction. The modules are suitable for the preparation of instructors in all occupational areas. This module is designed to give prospective teachers skill in organizing their classes and laboratories to install competency based education (CBE). It deals with the decision making, planning, and preparation that must be done before students actually arrive to participate in the CBE program. The information and practice activities in this module will assist student teachers in providing two key pieces to the CBE puzzle: a learning environment designed to help individual students achieve competencies, and a realistic system for managing records, assigning grades, and taking in new students. The module consists of a terminal objective, enabling objectives, prerequisites, resources, and four learning experiences. The learning experiences, each based on an enabling objective, contain activities, information, case studies, examples, and feedback. The final learning experience is an actual teaching situation in which the prospective teacher is to organize his/her class and laboratory to install CBE and be assessed by a resource person. (KC)