Beeby's description of the four modes of operation of school systems is couched mainly in terms of teachers' conduct in the classroom. In translating this into administrative terms, only two levels are of prime importance, formalism and meaning. Formalism implies preoccupation with maintenance of existing procedures and policies, while meaning implies concentration on planning for improvement and ensuring that the goals of the system and their applications to school are understood. It is a fair generalization to say that Australian educational systems are in a transitional stage. They display many of the characteristics of the "meaning" stage, but often as an uneasy compromise with the past. Of the various aspects of the trend toward diffusion of authority through the educational system, the following measures are especially critical: 1) the establishment of school councils, 2) increased school responsibility for curriculum development, 3) increased school responsibility for inservice education, and 4) increased school control over staff development. (Author/JG)