Declining school quality is one of the most serious problems facing Third World countries--particularly in Africa. Economic constraints limit opportunities to enhance teacher morale and performance even while upgrading teachers has become the central component of most efforts to reverse educational decline. While the most powerful incentives clearly tie direct compensation to the performance of the target behavior, resource limitations prompted increased interest in low-cost incentives. Kemmerer suggests that performance is directly linked to the quality and quantity of: (1) remuneration; (2) instructional support; (3) instructional supervision; (4) training; and (5) career opportunities. A sixth influence relates to the degree of community support for teachers and school reform. To improve teachers' satisfaction and performance, Botswana initiated a major reform of junior secondary education. To assess its effectiveness, classroom observations were conducted of 549 teachers in 50 classrooms. Teacher satisfaction is related to the quantity of training and the degree of instructional supervision, community support, and career opportunities. The most direct incentive, housing, appears unrelated to satisfaction. A paradox for school reformers is that increased job satisfaction may not improve performance or student achievement, because satisfied teachers may resist efforts to change. (40 endnotes) (TEJ)