Why would you use the hyperlink feature?
You probably already use Word to create the paper-based resources for your students.   It may be sensible to deliver these documents online over your network rather than as paper-based resources.  Users would open the Word document and embedded within your resource are the Web links and links to other support documents for the unit of work.   Using the hyperlink feature of Word in this way, you can avoid having to create web pages.  You can link to web pages, sound files (you can record your own), video files, other Word documents, spreadsheets --- in fact, any other type of file.

Hyperlinking Text, AutoShapes, Clip Art or Images

Select the text, AutoShape, Clip Art or Image you wish to make as a hyperlink. Choose the Insert Hyperlink button on the toolbar.
Complete the steps in the dialog box that appears. You can type a web address (URL) or click the Browse button and link to another file of any type.  Once you have created the link, click OK.  In your Word document, the selected text, shape or image is now hyperlinked to the nominated file.  As you move you mouse button over the text, shape or image, the mouse pointer will change to a finger (indicating a hyperlink).  When you click on it, the nominated file will open.

Creating bookmarks in a Word document
A bookmark is a named location in a file.  To create a book mark highlight the text and then choose Insert, Bookmark. A dialog box appears.   Give the bookmark a name (no spaces are allowed in the name for the bookmark) and click OK. Once you have a bookmark you can hyperlink to that particular location in a file using the Insert Hyperlink feature. 

Example
This feature is particularly useful for creating links to a glossary.   Create a Word document and creating the list of words that will form the glossary.   Create a bookmark for each word in the glossary.

Create your online resource and then at the appropriate place in the rsource create the link to the bookmark in the glossary.