Make sure at least eight written or oral questions are provided for each passage, and that the questions are thought provoking. Again, choose accurate grade level selections of approximately 100 words from the basal readers. Have the students read the passages silently. Provide eight or more written questions or quiz the student orally. If the student comprehends oral material better than he does written material, he may be able to advance quickly after remediation in the deficient areas.
Teacher evaluation is still the most important factor in establishing reading levels.
Watch the students as they read or work. It you observe any of the following, allow the student to begin work at a lower level. It is better and easier on all concerned to move a misplaced student up to another group than down. Testing materials and teacher evaluation are the professional tools used to accomplish your goal of placement. But don't forget that you have an even greater tool at your disposal - prayer.