Teacher effectiveness research and its use in classroom observation have progressed substantially since the seventies; findings are now experimentally significant, cover a broad subject range, and can be generalized beyond low economic status groups and elementary school students. New teacher evaluation criteria and observation techniques have been researched, with encouraging results. This paper, with its numerous handouts and annotated bibliographies, tries to help practitioners arrive at a research-based definition of teacher effectiveness, analyze behaviors, develop appropriate measuring tools, and consider several observation approaches to incorporate in the data. The handout information focuses on three areas of teacher effectiveness: (1) time-related performance variables (time on task and academic learning time), (2) classroom management and climate, and (3) instructional variables. These three areas provide a solid foundation for developing classroom observation tools that will translate the criteria into measurable data useful for instructional improvement. After describing a few of these tools and their potential for helping teachers change their behavior, the paper summarizes some overall approaches to observation, including "analysis of instruction,""developmental career stages," and "problem-centered models." Knowledge of all three approaches is essential for sound teacher evaluation. Eight pages of references and/or bibliographic comment are provided on such teacher effectiveness concerns as classroom management, time and learning, systematic observation, and teacher evaluation. Handouts include: (1) outlines of concepts (teacher effectiveness, management strategies, and teaching functions); and (2) forms to aid classroom observation. (MLH)