Purpose: The purpose of this paper is to identify the extent to which human resources (HR) decision making is influenced by the social context of school systems. More specifically, this study draws upon organizational theory focussed on the microfoundations of organizations as a lens identify key aspects of school HR decision making at the district and school level. Design/methodology/approach: Interview data were collected from district-level HR directors and local union presidents across 11 districts in Michigan and Indiana. The interviews provided information on the formal and informal aspects HR management. The interviews were audio recorded and transcribed, and the constant comparative method was used to move from initial codes to higher levels of abstraction (Miles and Huberman, 1994; Strauss and Corbin, 1990). Multiple data collection methods were utilized to help validate the interview data that were collected (Stake, 2004). Findings: The key findings show that social relationships, particularly at the school level, influence the distribution of teachers within a district. The findings support the need for closer attention to be given to the social dynamics of school systems and the impact this has on HR decision making, particular with regard to the influence of informal organizational structures and day-to-day interactions within systems. Originality/value: The current body of research does not fully attend conceptually or empirically to the broader social context of a school system which shape HR decisions. Specifically, researchers and practitioners need to further address the ways that the social dynamics of school systems shape administrative decision making with regard to HR management.