The purposes of this study were to determine, based on the perceptions of teachers and principals, during the first year of operation in new elementary schools: (1) the extent of change in organizational climate, (2) the extent of change in principal leadership behavior, (3) the difference between teachers' and principals' perceptions of climate and principal leadership behavior, and (4) the relationship between the openness factor of climate and the principal leadership behavior factors of consideration and structure. The major findings of the study included: 1) Both teachers' and principals' perceptions of the organizational climate in the school changed during the course of the school year. 2) Both teachers' and principals' perceptions of principal leadership behavior changed during the course of the school year. 3) The differences in teachers' and principals' perceptions of climate and principal leadership behavior as measured by the openness score of the OCDQ and the two dimension scores of the SBD were not statistically significant. 4) For the scores for the total group of subjects, the calculated correlation coefficients for the relationship between openness and consideration were all positive.