In the spirit of education reform, this paper presents a literature review that provides a framework for discussing methods of teacher evaluation, their effectiveness in assessing what they purport to do, and the concern for better evaluation methods that can lead to improved teaching. The chief concerns addressed are what actually defines an effective teacher and how evaluators can accurately assess whether the teacher is meeting the criteria. Following a definition of terms, the following aspects of research outcomes are outlined under the headings: (1) A History of the Topic; (2) What Is an Effective Teacher?; (3) Teacher Evaluation (purposes); (4) Methods of Evaluation; and (5) What To Do with Evaluation Results. The paper concludes with the following recommendations: before states and school districts evaluate teachers they must evaluate the process at hand; districts and states must take a step back and assess their methods for evaluating teachers; and since evaluation methods as used by many states and districts have not been changed in the last 20 years, the suggestions and research outcomes as discussed in this paper should allow states and districts to move teacher evaluation into the 21st Century. (Contains 27 references.) (LL)