Outcomes of Tennessee's Career Ladder Program are presented in this report, with a focus on the early implementation stage and perceptions of teachers and administrators. Methodology involved two sets of interviews with participating teachers and administrators from 18 schools and a statewide survey of 1,039 out of 2,105 faculty from 54 schools. Following an overview of the study, the second chapter describes the events and outcomes of the legislative process that created the program. Chapters 3 and 4 present interview and survey findings, which indicate concerns with the state/school district relationship, fast-tracking practices, and the statewide evaluation process. An overview of career ladder legislation in the 1985 Tennessee General Assembly is provided in the fifth chapter. The program's status, role of working conditions, and issues in evaluation, policy, and management are discussed in the final chapter. Twenty-nine tables are included. Appendices contain program updates, a program overview, a summary of 1984 special session events, highlights of state action, a list of 18 districts, and statewide program results. (58 references) (LMI)