This article explores the issues and concerns of Nepalese teachers in relation to Gaynor's (1998) three models of teacher management (administrative, grassroots and alternative), constructed in the context of decentralisation reform around the world. The article suggests that the existing teacher management policies in Nepal are problematic and controversial, embracing both the administrative and grassroots models of teacher management and maintaining both the centralised and decentralised policies of teacher selection, promotion and financing. With problems similar to those of many developing nations in Africa, decentralisation of teacher management results in growing division and hierarchy among teaching staff, and favouritism, cronyism and corruption at the local level. The lack of equitable distribution of qualified teachers across regions and schools is another concern. The article concludes that the decentralisation of teacher management is problematic particularly in the countries where a dual approach to teacher management has been adopted and where the political, economic, institutional, technical and educational systems need to respond to the specific characteristics and needs of schools and communities as a whole. (Contains 3 tables and 6 notes.)