The teaching function is examined to determine an improved budgetary planning and control system as well as comparisons across universities and polytechnics. The inputs, outcomes and processes of the teaching function are identified and defined, with available data collected and measured with reference to those defined variables and parameters. Institutional objectives of the teaching function are cited as optimization of the student intake potential, the pass rates, learning gain, and student employability. Teacher performance measures are identified as: (1) the average A level points score of enrollments compared with the average A level points score anticipated or some similar measures of the quality of client response; (2) the ratio of successes, failures and dropouts to enrollments; the learning gain; the relationship of each direct input (academic staff, teaching spaces, departmental administration and technician support, consumables and equipment) to enrollments, successes, and learning gain; and (3) feedback on graduates' initial employment and salaries. Statistical comparisons are given for the 1972-73 year, and projected research on such problem areas as measurement of learning gain is outlined. (LBH)