The theoretical and practical notions of school-based management (SBM) are critically examined in this paper. Literature is summarized pertaining to the definitions of SBM, philosophical and theoretical issues, leadership, productivity, the degree of innovation, market factors, and funding. Conclusions are that structural change does not always lead to increased autonomy for those in lower levels of the organization or to overall improved productivity, and it creates problems of funding equity. Principal leadership does not always empower others. The recommendation is made for SBM to be restructured around the notions of improvement, equity, and equal opportunity. (Contains 29 references.) (LMI)