The concern of this report is differentiated staffing. Background, historical precedents, and early models of this concept are explored, and a theory base is found in the concepts of a functional division of labor (specialized teaching talent) and the classical definition of promotion based on merit. Projects in differentiated staffing at Florida State University are briefly reviewed, and some conclusions are reached. Contrary to the expectations of most educators, the report finds that the immediate effect of differentiated staffing is apt to be limited, but it can lead to an educational climate that encourages change. Some indication is given that the concept has been watered-down in practice and that there has been economic confusions in the staffing variations. But, on the whole, the report finds that conditions of teaching and learning have been improved in every case. The report includes chapters on the role of the government, states, and teachers' agencies in differentiated staffing. Concluding, this report finds that more research and developmental efforts aimed at discovering which specific teacher role and behaviors will produce which specific effects in students are needed. A selected bibliography is provided. (Related document is SP 006 351.) (JA)