This module discusses the theory and practice of school improvement and outlines a nine-step systematic problem-solving process for developing an action plan addressing school improvement goals. The first section describes a general model for the study of the school as a social system, as developed by Getzels and Thelen (1960). The second section discusses the appropriate use of knowledge from the behavioral sciences in developing more effective schools. Four basic theoretical models are reviewed: Maslow's Need Hierarchy, Herzberg's Motivation-Hygiene Theory, McGregor's Theory X and Y, and Blake and Mouton's Managerial Grid Analysis. The third section then presents the nine steps to systematic problem-solving: (1) defining the problem area, (2) identifying the present level, (3) identifying the desired level, (4) reevaluating the problem in light of the discrepancy between present and desired levels, (5) identifying the possible causes that have led to the present situation, (6) using consensus to select those causes that seem most likely, (7) identifying possible solutions, (8) evaluating each solution, and (9) formulating a specific, detailed plan of action. The fourth section lists the advantages and disadvantages of five approaches to conflict management: competition, accommodation, avoidance, compromise, and collaboration. Appended are participant worksheets for viewing a film, "Managing Conflict," available from the Minnesota Department of Education, a chart of the model for conflict management, and grid sheet for systematic problem-solving. (TE)