The heads of the education divisions of 245 colleges and universities were surveyed regarding their opinions about faculty evaluation and reward procedures. Findings indicated that tenure received significantly more attention from decision-making bodies in the colleges than merit pay. Tenure was also viewed as having a greater effect on faculty behavior than merit pay, contract renewal, promotion, internal satisfaction, and desire for a reputation. Education administrators at top universities and large universities viewed desire for reputation more motivating than did other education administrators. The department chairs who responded believed that internal satisfaction was more of a motivating factor than did the deans. The deans rated merit pay, contract renewal, promotion, and tenure higher as motivators than did the department heads. Although evaluations of teaching were considered the most important for contract renewal, article and book publication was the most important considerations in merit pay, promotion, and tenure. A factor analysis grouped variables into three factors: teaching, service, and publication. Grant activity was grouped with publications, and paper presentations were grouped with service. Institutions with education administrators emphasizing publication had more resources. Appendices include the survey questionnaire, a list of participating colleges and universities, and a copy of the Ball State Educational Psychology Department merit pay policy. Contains 19 references. (Author/GLR)