Student Evaluation of Teaching (SET) is a widely spread and widely acknowledged means of evaluating teaching effectiveness in higher education institutions (HEIs). Student evaluation of teaching (SET) has been extensively researched, but there are still contradicting attitudes toward its use and validity, caused mainly by student grade bias. A performance metric is needed that can be used to identify student evaluation ratings independent of grading bias. This paper explores various purposes for which SET can be utilized, and the perceptions of the key stakeholders on its relative importance. To remove grade bias from evaluation, a figure of merit (F.O.M) is derived that can be used to identify a student evaluation rating independent of grading bias. The F.O.M is derived using statistical analysis that considers preprocessing of data, and removal of outliers to make it robust. It is found that F.O.M values between 0.7 and 1.3 reflect non-grade bias. Based on this F.O.M, recommendations are built to support the validity of SET in the whole process of teaching effectiveness alongside increased stakeholder engagement.
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