Using a sample of 300 Arab teachers in Israel, we developed a model to analyze how school-based management directly and indirectly (through motivation) affects school effectiveness. The results show that there is a positive relationship between all dimensions of self-management (decision-making, resource and personnel management, availability of resources, and organizational structure) and school effectiveness. In addition, the results show full mediation between resource management, personnel and organizational structure, and school effectiveness through motivation. Theoretical contributions and managerial implications as well as directions for future research are presented.