This literature review and annotated bibliography on student evaluations of teacher performance begins by reviewing the issues involved and the results of relevant research. The introductory section indicates that student evaluations of teaching effectiveness are commonly solicited in Ontario postsecondary institutions as diagnostic feedback to faculty about their teaching performance. Their use is regularly criticized by teachers, who question the validity and reliability of the data collected. Results of studies regarding the reliability and validity of students' evaluations are highly contradictory. Part of the problem lies in the preconceived biases of some who study student ratings, while variations in the evaluation instruments can make effective assessment difficult. Similarly, if there is a discrepancy between the grade expected by a student, and the actual grade received, this can significantly effect an evaluation's validity. Research shows that instructor sex, rank, and grading standards have minimal impact on student ratings, while there exists a positive correlation between student examination results and student instructor ratings. Student ratings have been found to be highly valid indices of achievement of attitudinal and motivational goals of education, and reasonably valid indices of achievement of cognitive goals. In general, research on student evaluations suggests that students are competent to report on teaching effectiveness and that the data is reliable and, when taken in context, valid. The annotated bibliography lists 30 papers, reports, book chapters, journal articles, and monographs, published between 1971 and 1988. (JMC)