This paper examines the policy-making function of the board of education as it is viewed in the educational literature. It begins by looking at several definitions of policy and suggests that policy is a statement of expressed philosophy, value orientation, and general direction. It examines the question of why written policies are necessary and does so in terms of such issues as accountability, the value of the policy-making process, and the promotion of efficiency. A historical perspective on the development of educational policy is offered. The author examines several models of policy-making, including the traditional model (characterized by a slow sequence of incremental changes) and alternative models (an open participation of diverse groups, a research-based qualitative approach, a dynamic response to environmental influences, or an open systems theory). The author concludes that two views of the school underlie policy-making. One sees the school as a service organization in which professionals hold the key to policy development, and the other stresses participatory democratic policies. He notes that the group that defines the possible solutions to a problem is the group on top in the power structure. (Author/JM)