This study examined (1) the rewards and incentive systems currently used in schools, (2) the relationship between the existing reward system and both the excellence of the school and the behavior of teachers and administrators in searching for alternatives, and (3) the possibility of defining a rewards system for teachers which would elicit greater pupil achievement. Results suggest that teachers in both high achieving and low achieving schools would be most highly motivated by a system which encourages the conscious application of a variety of intrinsic rewards. Situations which foster a sense of achievement and which lead to increased self-confidence were found to be useful, especially if self-assigned rather than externally-assigned. School administrators can help teachers analyze their teaching effectiveness as a means of generating these intrinsic rewards by using the techniques of clinical supervision. The study indicates that certain extrinsic rewards are also very important. Some of these take the form of job security and monetary arrangements; others relate to various feedback arrangements which provide the teacher with normative and neutral data describing the administrator's perceptions of his/her teaching effectiveness. (DDO)