A study of how principals in effective schools set norms for teacher behavior, student achievement, and educational goals used data from six elementary schools in Tennessee that achieved scores on standardized reading tests substantially higher than scores predicted on the basis of the students' socioeconomic levels. Four primary norm-setting techniques were identified: the principal can act as a resource provider for teachers; can adopt a "human relations" approach, relating to teachers in ways that make them want to comply; can assert the authority of his or her position, pulling rank to obtain teacher conformity; or can model appropriate behavior consciously or unconsciously. Of these techniques, that of providing resources may have the most potential for principal effectiveness since it permits establishment of a social exchange system in which teachers can offer their compliance with norms in exchange for the resources provided. An appendix lists the nine secondary norm-setting techniques identified in the study. (PGD)