A national study was conducted at the University of Texas to ascertain the current status of the practice of evaluating full-time faculty in public two-year colleges. Surveys were sent to the chief academic officer of 210 randomly selected two-year colleges requesting information on the climate of the organization when the evaluation system was implemented; the development of the purposes of and criteria used in evaluation; the procedures used in evaluation, appraisal review, and feedback; and the impact of the evaluation process. Based on responses from 141 institutions, study findings revealed: (1) many of the elements of a theoretical systems model for evaluation were practiced by the colleges surveyed, including input from the college constituency, an emphasis on classroom instruction, and the use of multiple sources and methods of evaluation; (2) evaluation elements that correlated significantly with satisfaction with the evaluation process included participation of college members in the formulation and implementation of the system, an emphasis on faculty improvement, and the use of clearly defined criteria and standards of performance; and (3) significant negative relationships existed between the evaluation system and respondent satisfaction where respondents were dissatisfied with a prior evaluation system, where collective barganing representatives had input into the development of criteria, and where the primary purpose of the evaluation was to satisfy external agencies. (HB)