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Public schools operate in a changing and dynamic environment evident in technological innovations, increased social heterogeneity and competition, all contributing to school leaders’ uncertainty. Such changes inevitably influence schools’ inner dynamic and may therefore undermine schools’ organizational health. School leaders have a crucial role in buffering these external influences and promoting schools’ organizational health. The purpose of this paper is to assess the role transformational school leaders play in mediating the relationship between perceived environmental uncertainty and schools’ organizational health in a context characterized by uncertainty and instability which follow political instability.

The researchers administered questionnaires to 954 teachers coming from 191 randomly sampled public elementary schools in Israel.

Results indicate a negative impact that perceived environmental uncertainty has on schools’ organizational health evident in the degree of academic emphasis and staff affiliation with the school, in the school’s institutional integrity, and in the principal’s ability to both secure resources for the school and demonstrate collegiality toward teachers. Findings also show that transformational school principals are able to moderate the negative impact environmental uncertainty has on schools’ organizational health.

The findings validate the growing uncertainty characterizing the environment in which public schools operate. They further strengthen existing knowledge on the transformational leadership style in light of its unique capacity to buffer negative external influences imposed on schools and maintain their organizational health.

While the significance of principals for the organizational behavior of schools is crucial, school leaders’ influence on school outcomes is indirect and mediated through various means that leaders employ in order to increase the productivity of their school. Although the exercise of power is viewed among the main factors explaining followers’ willingness to comply with leaders’ demands and means to promote school effectiveness, it is rather surprising that the educational administration literature lacks substantial evidence testifying to the mediating effect that principals’ use of various powerbases has on school effectiveness. The purpose of this paper is to make an attempt to fill this gap.

Questionnaires were administered to 954 teachers coming from 191 randomly sampled public elementary schools.

Evidence testifying to the relation between leadership styles and use of powerbases suggests that the transformational leadership style is positively related to the use of soft powerbases and negatively related to the use of harsh powerbases. Findings also show that leadership style and powerbase utilization differentiate effective and ineffective schools. Finally, it is evident that soft powerbases such as expertise, personal reward and referent powerbases partially mediate the relation between the transformational leadership style and school effectiveness, moderating the negative relation found between the passive leadership style and school effectiveness.

These findings confirm that powerbases are in fact a mechanism through which school leaders influence school effectiveness. Implications are further discussed.