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This study aims to assess the effects of classroom environment on the overall effectiveness of a school. Whether steps towards effective schools should be taken from top-down, that is from leaders, or bottom-up, that is from other members of school has been a matter of discussion. The truth is that a leadership that cannot reach classes cannot be considered to be an effective leadership. Among many factors leading up to effective schools, classroom environment is one of the most significant. Quality of classroom teaching and learning, teachers' characteristics, nature of teacher-student, student-teacher and student-student interactions, the way conflicts are resolved in class, learning habits, attitudes towards learning and how these factors are reflected on students' academic success and their social and cognitive attitudes play a role in increasing effectiveness of schools.