This research report offers a theoretical framework for interpreting and improving the incentives available to elementary school teachers by drawing together diverse threads of research on work motivation, reward patterns, and incentive systems across a broad range of work settings. The report draws upon data collected during a year-long study of 15 elementary school teachers, their 5 principals, and 10 central office administrators in one moderately large, urban, unified school district in southern California. This report includes the executive summary of the study as well as eight additional chapters. Chapter 1 offers an overview of teaching incentives, and chapter 2 reviews prior research on elementary school teachers' work motivation, and reward and incentive systems. In the third chapter, the 15 teachers' work orientations and incentive systems are outlined on organizational, group, and individual levels. Chapter 4, "Teaching Lessons: The Cultural Enterprize of the Classroom," describes lesson structure archetypes, variations, and elements. The fifth chapter discusses classroom management (rules and their enforcement) from the cultural perspective. Chapter 6 puts the five school principals' administrative work in cultural perspective. Chapter 7 talks about different cultural incentives and effective teaching. Chapter 8 discusses policy implications involved in teacher incentives and school achievement and administration. Appended to the report are methodological notes and references. (JMK)