Designed to present a workable system for first grade reading group sessions, this report contains a detailed explanation of 22 principles for managing small group instruction. The principles it describes reflect experience and research involving teachers and young children in small groups and fall into two major categories: organizing and managing the sessions and responding to children's answers. Under the first heading, the report discusses principles concerned with getting children's attention, introducing the lesson, calling on children, and meeting individual learning needs within the group. Under the second heading, the report examines what to do when children fail to respond or respond incorrectly, how to acknowledge correct answers, and how to give praise and criticism. (MM)