Grading from the Inside Out is a very good book that describes how to develop a standard-based mindset for assessment. It is a highly recommended read. If you are unable to get your hands on this book, visit his website, as it is also full of information.
As the school year begins, it is important to reflect upon our practice using levelled texts. Irene Fountas, one of the authors from Fountas and Pinnell, reminds us that we may be using the levelled texts in ways that were not intended. "Rather than the use of levels in reporting to families, we have encouraged the use of terms like "reading at grade level expectation" or "reading above grade level expectation" or "not yet reading at grade level expectation" on report cards along with other clear indicators of a student's processing abilities such as understanding, word-solving abilities, accuracy and fluency."