Theoretically, schools that practice school-based management (SBM) should be more effective. However, researchers do not agree whether the effects of SBM are negative or positive. This paper discusses how the practice of a self-management framework (in which key actors practice self-management cycles at the school, group, and teacher levels) could facilitate the school, groups, and individual teachers in continuous self-learning and development, and in turn enhance multilevel performance in the school. The paper describes the School Management Initiative (SMI) in Hong Kong schools, and analyzes the recommendations set out in the SMI policy document. The paper then proposes directions for further development of school-based management in Hong Kong: (1) focus on human initiative; (2) introduce multi-level self-management; (3) maintain consistent practice across all levels; and (4) foster student self-management and development. One table is included. (Contains 21 references.) (LMI)