DEMANDS FOR QUALITY EDUCATION HAVE EMPHASIZED THE NEED FOR OBJECTIVE MERIT RATING OF TEACHERS FOR PROMOTION AND SALARY INCREASES. THE STUDY REVIEWS MERIT-RATING LITERATURE, ANALYZES RATING SCALES AND PROCEDURES, AND MAKES RECOMMENDATIONS FOR DEVELOPING AND IMPLEMENTING MERIT PROGRAMS. THE WRITERS CONCLUDE THAT A COMBINATION OF SUPERORDINATE, PEER, STUDENT, AND SELF-EVALUATION BEST PROVIDES A BASIS FOR DECISIONS ON MERIT INCREASES AND PROMOTIONS. CONTENTS OF 21 RATING SCALES (SEVEN SUPERORDINATE, FOUR PEER, FIVE SELF, AND FIVE STUDENT) REVEALED THAT THE IMPORTANT FACTORS INVOLVED IN FACULTY RATING ARE, IN DESCENDING ORDER, (1) CLASSROOM TEACHING, (2) PERSONAL ATTRIBUTES, (3) PROFESSIONAL GROWTH ACTIVITIES, (4) STUDENT-FACULTY RELATIONS, (5) COMMUNITY SERVICE, (6) SERVICE TO THE INSTITUTION, (7) LENGTH OF SERVICE, (8) RESEARCH AND PUBLICATION, AND (9) COMPETING OFFERS. THIS ORDERING SHOWS A HIGH CORRELATION WITH PREVIOUS STUDIES. THERE IS NO STANDARD PATTERN OF MERIT RATING. HOWEVER, THE AGREEMENT ON FACTORS IMPORTANT IN JUDGING TEACHER EFFECTIVENESS CAN SERVE AS A GUIDELINE IN DEVELOPING A MERIT PROGRAM. SEVERAL RATINGS FROM DIFFERENT SOURCES SHOULD BE USED, AND BOTH DESCRIPTIVE PHRASES AND NUMERICAL RATING ARE USEFUL. THIS PUBLICATION IS ALSO AVAILABLE FROM THE INSTITUTE OF HIGHER EDUCATION, UNIVERSITY OF GEORGIA, ATHENS, GEORGIA, FOR $.50. (HM)