A study used discussion, role playing, writing, observation and evaluation to assess students' understanding of humanistic values as experienced in three pieces of dramatic literature. Subjects, a selected group of 14 eleventh-grade students enrolled in a creative and performing arts magnet school in Philadelphia, Pennsylvania, used "Our Town" by Thornton Wilder, "No Exit" by Jean Paul Sartre, and "Cacophony" by Beverly Barnes Kelch to explore their values. Data included interviews, student and teacher logs, discussions, observations, and audio and video taping. Results indicated that the group acquired the properties of Group Dynamics, as described by Lawrence Kohlberg, including: a shared background; a participation pattern in which nearly all students usually contributed and a communication pattern marked by students speaking on any subject suitable for public disclosure; a great deal of growth in group cohesion; a nearly always warm, friendly, and accepting atmosphere; standards (such as "be polite to others"; and significant changes in the patterns of how the students felt about each other. Results also indicated that one student was in stage 1, five students were in stage 2, four students were in stage 4, and three students were in stage 6 of the six stages of moral reasoning developed by Lawrence Kohlberg. (Contains 56 references.) (RS)