This paper presents findings of a study that explored the governance and administration of elementary and secondary schools in Bavaria, in the Federal Republic of Germany. The sample included 12 Bavarian schools--3 each of the following 4 types of schools--elementary (Grundschulen) and secondary (Gymnasien, Realschulen, and Hauptschulen). Data were gathered from interviews with school principals or headmasters and some administrative staff, observation, and document analysis. Findings showed that the selection process for teachers in Germany is much more rigorous than in the United States. Principals are experienced classroom teachers with proven ability who continue to teach. In addition, the entire district apparatus is missing; there are no superintendents, lay boards of education, and so forth. Bavarian schools appear to function extremely well within a framework of fairly tight external control, while enjoying strong professionalism among educators and freedom from the micromanagement that all too often plagues their American counterparts. Findings underscore the need for fundamental and systemic reform in the United States; high student achievement must be preceded by advances in teacher professionalism. (Contains 35 references and 11 footnotes.) (LMI)