This study aims to identify various demands and attitudes of diverse social groups toward the functions of schooling, on which the implementation of school policies should be based. The functions of school as a social institute are distinguished into five categories, i.e., political function, economic function, socialization function, social selection function, and educational function. A sample of 844 persons comprised of undergraduates, teachers and parents were surveyed to investigate their perceptions on the importance and effectiveness of schooling in terms of its major functions. The results showed that all the three groups had the identical perceptions on the importance of schooling by its functions. They put the highest priority on the educational function of school, followed by socialization, economic function, social selection, and political function. Interestingly, however, the rank of perceived effectiveness of ‘educational’ function of school was at the lowest, while the top of the rank was on the socialization function, followed by economic function, political function, and social selection function. This implies that there is a severe gap between the demand for what schooling should be and the perception of reality about what schooling is. Finally, it was suggested that the implementation of school policies should be based on the empirical studies about social demands and evaluation on functions of schooling rather than the logical analysis or normative assertions. And it was emphasized that the multiplicity and vagueness of the social demands for schooling should be settled before making any school reform.