This report focuses on self-discipline as a cornerstone in the educational development of a productive workforce and asserts that young people today are not developing a sufficient degree of self-discipline in the course of their education. Chapter I, an introduction, cites the economic costs to employers of poor academic preparation among young people entering employment and cites the threat to America's competitiveness posed by a poorly educated populace. Chapter II states the need for improvement efforts to move from a narrow focus on teaching to a more encompassing outlook on education, as an enterprise involving both cognitive and psychic development. Chapter III discusses the significance of inadequate self-discipline. Findings from the recent Coleman Report on public and private schools are cited and quantitative data are presented regarding factors said to be indicative of self-discipline: homework (number of hours per week), the effectiveness and fairness of school discipline (as perceived by students), and the level of teacher interest in students (as perceived by students). Chapter IV briefly considers the negative relationship between self-discipline and discipline enforced externally. Chapter V examines areas that must be addressed if educational reforms are to have an effect on self-discipline. These include (1) the importance of non-instructional school experiences; (2) enhancing classroom environment; (3) reducing external pressures placed on young people; (4) strengthening curricula; (5) improving student study habits; (6) increasing community involvement in the schools; and (7) removing burdensome government regulations. In conclusion, Chapter VI stresses that the schooling process should be viewed as an extracurricular activity with broad educational mandates, and calls for the business community to aid schools in helping to develop responsible employees and citizens. (GC)