This study was conducted to measure and compare the perceptions of teachers and principals regarding the likelihood that increased work effort would lead to increased receipt of outcomes, and to determine which actions by principals were perceived by teachers to be motivational. Participants consisted of teachers (n=230) and principals (n=6) in six public schools in Mississippi that had been named National Exemplary Schools and teachers (N=382) and principals (N=12) of 12 other accredited public schools in Mississippi. A survey instrument and interviews were utilized to measure teacher levels of 10 valued outcomes: achievement, advancement, affiliation, autonomy, creativity, influence, material gain, recognition, safety, and service. Responses were compared between the two teacher groups and between teachers and principals. Results suggest that in some respects, such as the importance of motivators, the teachers and principals in the exemplary schools are similar to the teachers and principals in other schools. In areas such as expectancy, the two groups appear to be quite different. Analysis of interview data yielded the information that specific principal actions were considered to be motivational by teachers. These actions by principals effectively address the articulation of the school vision, team building, and affiliation; and they encourage, promote, recognize, and reward exemplary work effort. (LL)