In public schools, the principal's role is of paramount importance in influencing teachers to excel and to keep their job satisfaction high. The self-efficacy of leaders is an important characteristic of leadership, but this issue has not been extensively explored in school principals. Using internet-based questionnaires, this study obtained scores on the self-report Principal Sense of Efficacy Scale, including areas of management, instructional, and moral leadership, of 50 elementary, middle, and high school principals in Arizona. These scores were compared to their teachers' perceptions of their leadership (N = 1403 across the 50 schools), using the Leadership Behavior Survey, including subscales on human relations, trust/decision making, instructional leadership, control, and conflict. Teachers reported intrinsic and extrinsic job satisfaction on the Minnesota Satisfaction Questionnaire. As hypothesized, teacher job satisfaction was strongly related to perceptions of their principal's leadership in all areas (total satisfaction x overall perception: r = 0.645, p < 0.001). As expected, principals' self-ratings of their efficacy, particularly in the area of management, were generally, positively correlated with their teachers' ratings of their leadership (r = 0.328, p < 0.001). Principals' self-ratings were also positively related to teachers' extrinsic job satisfaction (with total principal self-efficacy: r = 0.424, p < 0.01), but not with intrinsic job satisfaction (r = 0.270, "ns"). It was concluded that principal self-efficacy is directly related to teachers' perceptions of their leadership and job satisfaction. It was recommended that principals may wish to concentrate on their management leadership. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]