Teacher efficacy is a critical variable in teacher and school effectiveness. The Teacher Efficacy Scale was used to assess teacher efficacy and investigate its relationship to teacher use of time, student time on task, and student achievement. Classroom observations were gathered from 14 teachers, grades 4-6, at two schools. Teacher allocation of time, student engagement, and student achievement were measured. Means and standard deviations and correlations among variables for teacher efficacy, teacher academic focus, student engagement rates and achievement were derived. Personal teaching efficacy (level of confidence in personal teaching abilities) correlated positively with reading achievement and whole class instruction and negatively with small group instruction. Teaching efficacy (general expectation of student success) correlated significantly with language and mathematics achievement. This study supports the contention that a teacher's sense of efficacy is significantly related to classroom grouping of students and to student achievement outcomes. (BAE)