The effects of performance evaluations of teachers on their effort and effectiveness was studied. The evaluation system based on Dornbusch and Scott's theory was used. Stages in evaluating performance included allocating, criteria-setting, sampling, appraising, communicating the evaluation, and planning for improvement. Sets of tasks to characterize teachers' work included teaching subject matter, character development, maintaining control, and record keeping. The author developed a concept termed "leverage" which referred to the relationship between subordinate effort and subordinate outcomes. Teachers in six inner-city schools responded to Likert Scale response surveys dealing with the evaluation of their performance, the effort they devoted to teaching, and their effectiveness at those tasks. Two measures of leverage were obtained, Teacher Assessment of Leverage (TAL) and Composite Assessment of Leverage (CAL). Frequency of evaluation was positively related to teacher leverage. Teachers evaluated more frequently experienced a greater degree of effectiveness in relation to their effort on teaching tasks. It was found that tasks were conceptualized as inert by teachers. Confirmation of this finding would carry negative consequences for learning experiences of students and teachers' work experiences. (DWH)