Literature Based Approach

 simply put, Literature-based approach is means of using literature as the basis for classroom instruction; it takes into account that literature is not just "reading", but is a wealth of experiences to be shared and appreciated by those involved, especially the developing young reader.  It makes use of authors original narrative and expository writings as the core of experiences to support children in developing literacy. As teachers and former literature students, we know all too well that literature has not always been and continues not to be a subject of choice for the very reason that it has been taught through a strong reading base. Realising that this has left our students more disillusioned about the subject, there is call for teachers to use more innovative, meaningful methods/activities to enable students to see the benefits/value of literature. By using original narrative and expository writings as the core for experiences to support children in developing litearcy in conjunction with authentic activities such as "talking" (sharing) about the book after reading , and making connections to real life experiences, childrena and adults are better able and willing to develop literacy skills of reading, writing and thinking (Wells, 1990) (Tunell & Jacobs, 1989).
This can be achieved through a variety of ways:

• Thematic Instruction/Organization: this consists of a series of learning experiences that zoom in on a particular theme, topic or unit, genre or author; which consists of specific learning outcomes for students.Through this approach  students are able to build on prior knowledge to construct meaning. (Anderson & Pearson, 1984)students are also able to make connections and transfer learning. It also provides students with a model for developing reading and writing skills; because they ar exposed to a particular theme or topic for a length of time, then they are well exposed to sufficient examples to help them produce better quality structured writings.(Marzano, 1991)
• Responding to Literature: unlike the traditional approach to teaching literature through basal readers, and asking students rote questions about what happened in the text, students are provided with the opportunity to respond to the text in ways that are more "natural" and meaningful to them; example: discussion, journal entries, drama, listening logs, portfolios and even blogs. Not only does this tap into their creative nature, but it also respects their individuality, By developing this intimate relationship with the text  and its authentic, believable characters students are exposed to multiple cultures and principles able to draw from each others experiences , viewing issues from different perspectives which could promote more tolerance among students in and out of the classroom.

In the end the role of teacher here is to plan thoroughly, selecting themes that both valuable and appropriate for students; help students to activate prior knowledge and link it with those in the text and very important , provide students with scaffolding (Martinez & Roser, 1991). In combination these will do well to instil in students an appreciation and respect for literature as a wealth of pleasurable experiences.
http://www.eduplace.com/rdg/res/literacy/lit_ins1.html
http://www.teflplace.com/?p=470
http://findarticles.com/p/articles/mi_m2248/is_n126_v32/ai_19619409/