Social validity is an important factor to consider when assessing proposed social and educational programs. This study used survey data to investigate the reactions of both elementary students and teachers to the use of a formative evaluation system in reading. Specifically, this study examined students' knowledge about their performance, teachers' decisions regarding student programming, the use of assessment procedures, and teachers' general reactions to the usefulness of a direct and continuous measurement and evaluation system. Results indicated generally positive reactions toward the direct and continuous measurement and evaluation system: students were more aware of working toward a goal and were more optimistic about their progress, and teachers were better able to realistically judge their students' progress. Implications are discussed regarding teachers' suggestions for modification of the procedures. (Author)