A system and method of evaluating the performance of an instructor of an electronic course is well suited for establishing a performance-based component of pay for the instructor to provide the instructor with a financial incentive for meeting a performance goal. A communications monitor monitors quantitative performance data on the instructor and students participating in an electronic course. A first database 32 stores the monitored quantitative performance data. A data processor determines at least one quantitative evaluative factor of a course attendance factor and an instructor response time based on the quantitative performance data. The communications monitor facilitates the gathering of qualitative performance data in a second database. The qualitative performance data may be reviewed to form a qualitative evaluation report of the instructor.
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