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:
“Quidquid luce fuit tenebris agit: but also the other way around. What we experience in dreams, so long as we experience it frequently, is in the end just as much a part of the total economy of our soul as anything we “really” experience: because of it we are richer or poorer, are sensitive to one need more or less, and are eventually guided a little by our dream-habits in broad daylight and even in the most cheerful moments occupying our waking spirit.”
—Friedrich Nietzsche (1844–1900)