This paper synthesizes research on the motivational effects of school-based performance award (SBPA) programs on teachers in Kentucky and North Carolina. The research, conducted by the Consortium for Policy Research in Education between 1995 and 1998, focuses on teachers' reactions to SBPA programs and the relationship between these reactions and subsequent school performance. The study uses a combination of onsite interviews and survey questionnaires to assess teacher and principal attitudes and responses to the programs. The findings suggest that successful SBPA programs are complex undertakings that require attention to all five elements of the motivation model: expectancy, instrumentality, valence, teacher competencies, and enabling conditions. Teachers' perceptions of the likelihood that their efforts will lead to student achievement goals, the probability that meeting these goals will lead to desirable outcomes, and the desirability of these outcomes are key factors in teacher motivation. The study also examines whether teachers' motivational responses are predictive of schools' success in meeting their student achievement goals. The results indicate that while most teachers viewed receiving a bonus as appropriate and desirable, there was low perceived desirability and motivation for the bonus program overall. Additionally, the study found that teacher expectancy varied across teachers and schools, with schools that had achieved award status in the past likely to have higher teacher expectancy. Factors such as feedback, goal conflict, school management, leadership, and perceived program fairness significantly influenced teacher expectancy. The paper concludes by discussing the implications for policymakers and educators in designing and implementing SBPA programs.This paper synthesizes research on the motivational effects of school-based performance award (SBPA) programs on teachers in Kentucky and North Carolina. The research, conducted by the Consortium for Policy Research in Education between 1995 and 1998, focuses on teachers' reactions to SBPA programs and the relationship between these reactions and subsequent school performance. The study uses a combination of onsite interviews and survey questionnaires to assess teacher and principal attitudes and responses to the programs. The findings suggest that successful SBPA programs are complex undertakings that require attention to all five elements of the motivation model: expectancy, instrumentality, valence, teacher competencies, and enabling conditions. Teachers' perceptions of the likelihood that their efforts will lead to student achievement goals, the probability that meeting these goals will lead to desirable outcomes, and the desirability of these outcomes are key factors in teacher motivation. The study also examines whether teachers' motivational responses are predictive of schools' success in meeting their student achievement goals. The results indicate that while most teachers viewed receiving a bonus as appropriate and desirable, there was low perceived desirability and motivation for the bonus program overall. Additionally, the study found that teacher expectancy varied across teachers and schools, with schools that had achieved award status in the past likely to have higher teacher expectancy. Factors such as feedback, goal conflict, school management, leadership, and perceived program fairness significantly influenced teacher expectancy. The paper concludes by discussing the implications for policymakers and educators in designing and implementing SBPA programs.