In 1977, a task force on teaching evaluation was formed at the University of California to recommend means of implementing reliable, flexible and effective teaching evaluation for the improvement of teaching and the consideration of teaching in personnel actions. Surveys of faculty and department chairs revealed strong support for colleague evaluation including colleague observation and colleague review of course materials. A number of guidelines for the use of colleague evaluation are discussed to ensure fairness in the use of colleague evaluation for personnel actions. A distinction is made between the use of evaluations primarily for improvement and the use of personnel actions. (Author)