Begin by teaching students about character development. You want to focus on the development of realistic characters that are possible to relate to the human experience. Have students create a character and write a full page on the character's outward and inward attributes. Have them write a second page on the character's biography.
Discuss the topic of settings in the realm of fiction. Tell students there are different types of settings, such as time, place, and landscape. Have students practice writing one page descriptions on different types of settings. For example, instruct students to pick a time period, a place in that time period, and a geographic region. Then instruct them to describe the setting with as much detail as possible. Every time they move their character to a new setting, they need to relate what the character sees.
Describe the importance of plot in fiction. Select several fictional books and have the students read and discuss the stories as they progress. You will have them identify the protagonist, the antagonist, the setting, the major characters, the beginning, middle, climax, falling action, and end. In addition, have them discuss where the narrative voice is coming from. They should be able to identify if the story is in third or first person. Once they get a firm grasp on plot, setting, and character development, they can begin to understand how to write their own stories.
Have each students relate a personal story from his own life to the rest of the class through the medium of a short story. Students will be instructed to fully flesh out the characters, plot, setting, and narrative voice of the story. For the purpose of this exercise, have them write the story in first person, relating the events from their own perspective.