This literature review assesses where higher education is in relation to faculty development and where faculty development efforts need to go. Literature on faculty development has addressed the nature of faculty development in light of faculty needs at various stages of their professional careers. Results suggest that career stage affects teachers' attitudes and job behaviors. The literature also indicates that faculty development is closely related to strengthened faculty morale and vitality, improved teaching performance, enhanced research motivation and productivity, and increased job satisfaction and work commitment. Some research shows that teaching conditions and quality of life affect faculty morale. In order to foster faculty development and enhance faculty improvement programs, specific methods have been suggested and practiced, including: treating faculty with respect, valuing faculty as professionals, allowing faculty governance, and offering rewards. Some paid leave programs, including sabbaticals, have been appreciated by teachers because they provide sufficient time to carry out research projects or engage in instructional development education. Faculty commitment is a key element in effective faculty development. Results justify the necessity for faculty development as a means of improving higher education institutions as a whole. (Contains 11 references.) (SM)