Examination of the relevant literature indicates that most studies of school structure and interpersonal relations have either been too narrow in scope, too theoretical, or too tied to the individual as the unit of analysis to support any conclusive generalizations. A search of the literature for appropriate variables to include in a more complex analysis suggested the use of perceived organizational effectiveness, loyalty, and job satisfaction as dependent variables, and organizational structures and organizational processes as independent variables. Instruments measuring these variables were applied to 114 schools in 12 school districts, and the responses subjected to multiple regression analysis. Results indicated that more effective schools, as perceived by teachers, are characterized by more participative organizational processes, less centralized decision-making structures, more formalized general rules, and more complexity or high professional activity. The results also revealed that of three hypotheses based on a synthesis of the literature only one was borne out. This indicates a need for continued use of more sophisticated techniques to test the assumptions made as a result of earlier, less complex research. (Author/PD)