The behaviorist world view, influential in many social-science disciplines, is challenged by theories of action. With steady developments in nonbehaviorist thinking and related social-action conceptions, the study of school organizational structure can be transformed into a field centered about the dynamics of individuals' practical actions. This paper tries to explain the various aspects of reality that are, in different degrees, inconsistent with rationalist and utilitarian assumptions. The paper explores several aspects of social theory concerned with practical action and hypothesizes using them as a theoretical scheme for understanding the functional logic of school organization's formal structure. School members' practical actions, consciousness, and reasoning function as a central element in producing and reproducing the formal structure of school organization. Rationality in everyday school settings is created from the practical, daily actions occurring within complex social environments. These actions develop largely from members' attempt to make actions accountable. Practical actions have indexality (meaningful context), are oriented toward building structures, and revolve about rules and norms. Individuals' practical actions produce and reproduce a larger system while remaining an essential part of it. (Contains 29 references.) (MLH)