The demand for competency based education reflects a desire for more public, consistent, and objective standards of student assessment. This demand implies a change in the definition and interrelations among four operational functions of the school: instruction, acculturation, supervision, and certification. The institution of externally referenced performance standards also interferes with the current teacher-centered mechanisms for gaining student compliance in four ways. It violates the beliefs that teachers alone have the right to set evaluation standards for students. Second, it changes the role of teachers from judge to facilitator. Third, it forces a shift toward more interaction among teachers. Finally, teacher power over students, formerly based on their monopoly over evaluation and certification, will be replaced by opportunities to work with students on common goals. This potential loss of power is seen as a major source of resistance to any change in ground rules for student evaluation. Nevertheless, one can anticipate an improvement in both learning climates and incentives for success as standards become more visible and clearly defined. (Author/JM)