Performance-based Economy
Outcome-based methods are used in some businesses. For whole companies, outcome-based evaluations are the basis of stock exchange prices: Companies which produce higher profit growth are more valuable than companies which perform poorly. Employees who are paid for piecework or by commission are examples of traditional employment use of outcome-based pay. Alternatives include seniority systems (oldest worker gets highest pay).
Many private employers give standards-based tests to determine whether job applicants have necessary job skills (such as typing speed), and nearly all government employees have to take and pass a civil service examination. Furthermore, nearly all licensed professionals, from nurses to truck drivers to beauticians, already take such tests as a condition of entering their professions. Often these tests have disproportionate failure rates for disadvantaged subgroups, such as school dropouts and impoverished people.
Read more about this topic: Outcome-based Education
Famous quotes containing the word economy:
“Cities need old buildings so badly it is probably impossible for vigorous streets and districts to grow without them.... for really new ideas of any kind—no matter how ultimately profitable or otherwise successful some of them might prove to be—there is no leeway for such chancy trial, error and experimentation in the high-overhead economy of new construction. Old ideas can sometimes use new buildings. New ideas must use old buildings.”
—Jane Jacobs (b. 1916)