The present study was designed to investigate the teacher and student morale in two schools, one with and one without obvious problems. The research focuses on (1) staff feelings about coworkers and supervisors, and staff satisfaction with the degree of participation and recognition received from work; (2) student feelings about teachers, student enthusiasm for school, and student self-esteem; and (3) the overall morale in each school. Although scores at both schools were lower than average, analysis of variance indicated some significant differences between the schools. The findings are discussed and a plan of action is proposed. (Author/IRT)