This paper contributes to an emerging rational reconstruction of the concept of educational leadership in a critical theory (or method) of education. This partly accomplished task is extended by appropriating and analyzing the social philosophy of Jurgen Habermas. In particular, the theory of communicative action and the notion of the ideal speech situation is explored for relevance to the reconstruction of educational leadership. The prevailing bureaucratic and individualistic concept of leadership is increasingly inappropriate in educational organizations if democracy is to be advanced. Functionalist leadership research assumes that leaders and followers operate within an uncontested and real social structure. The leader's key task, then, is to increase productivity capability within a given structure. Contingency leadership theories, Blake and Mouton's (1975) managerial grid, and House's (1971) pathological theory of leadership are flawed because the assumptions of orthodox social science are inadequate. Actually, language forms and communication structures in an organization shape the leadership form deemed appropriate. Habermas posits two basic forms of social action: labor or purposive rational action (concerned with technical efficiency) and interaction or communicative action. In the ideal speech situation, all participants have an equal chance to employ any or all language functions. In "pure" communicative action, individuals participate in or take up discourse without hidden intentions or motives and have equal opportunities to question the validity of another's argument. This kind of communication structure should result in greater understanding, less distortion of meaning, and increased learning. (27 references) (MLH)