The application of market-based principles to school management and the onset of heavy-handed accountability represent a new policy direction in education. The new policy direction has led to a reconceptualization of the purpose of education, the redesign of teaching work and attempts to manage teacher identities to align them with the new official organizational identities of schools. Such changes have created identity-based injustices for many teachers whose identities are incompatible with the new policy direction. While teachers continue to exercise agency in the face of identity management strategies, those who have attempted to resist as individuals encounter considerable difficulty. There may be more promise for the exercise of agency and resistance in the form of collective action. Educational administrators, who play an important role in the management of teacher identity, need to consider the moral implications of their actions. An important step for administrators is the development of professional self-identities that emphasize Langford's notion of agency as "principals", as opposed to self-identifying as "agents-for-another".