This volume is part of a series of monographs from Australia devoted to outlining an alternative approach, based on neo-Marxist concepts, to policy studies in education. The opening essay in this volume argues that real and significant educational reform will not come about through a revolution in decision-making and managerial technology, but rather through a greater consensus about basic values and a greater understanding of the relationship among schools, society, and the realization of human potential. The essay begins by raising a series of fundamental issues regarding the nature and scope of educational policy and discussing four paradigms of policy analysis. This is followed by a discussion of five specific theories of policy making commonly found in the literature on policy sciences, in order to show how these theories are rooted in the functionalist paradigm. In opposition to this dominant view, the rest of the essay defines and discusses radical humanism and critical theory as reformation and concludes with a prologue to a critical analysis of educational policy. Three readings by different authors follow: (1) "Problem Setting in Policy Research," by Martin Rein and Donald A. Schon; (2) "Why Educational Policies Often Fail: The Hyperrationalization Hypothesis," by Arthur E. Wise; and (3) "Schools for Democracy?" by A. H. Halsey. An annotated bibliography is included. (TE)