I  wanted to pop in really fast and share a very simple way to organize and implement word work.

We had to use a specific program for spelling in my district.  We used these words as our word work, since they were based off of the Words Their Way Program.
Word lists were differentiated.  We had three groups: an above grade level that got the challenge list from the series, an on grade level list that got the “regular” list from the series, and a below level group that worked on Dolch sight words. 
The groups were color coded. Each week I typed up the spellings lists and put several copies in the color coded folders.  When it was time for word work (a rotation during guided reading), students would go to their group’s folder and pull out their list for the week.
I had collected a variety of letter tiles over the years.  Some were the letters on heavy cardboard, others were magnetic letters, and others where plastic letter tiles. Students could use the pop up pocket charts (from WalMart) to practicing spelling the words or just work on the floor.
Each set of letters was stored in a bead box/ tackle box.  The boxes had enough slots for each letter and the letters were sorted into the slots.  To help students, I just used a permanent marker to write the letter on the bottom of the slot, so letters could be cleaned up easily.
Want to see how this looked in my classroom?
Yep.  It was a bit of a hot mess!  The kids knew how it worked, though.  You can see the folders at the top and the blue pop up pocket chart in the middle.  I placed the green dot stickers on the tackle boxes because students had a hard time figuring out where to press to close them.  Boom- press the green dot! 😉
Do you do word work?  How do you organize your materials?