Contract grading allows students to make important choices about what, how, and when to learn, thereby facilitating the development of a partnership learning environment in which students are likely to retain more information, make better use of information, and be more highly motivated to learn than in teacher-directed learning environments. This article argues the central role of contract grading in postmodern pedagogy and discusses in depth how to implement contract grading efficiently and effectively. It also addresses a significant benefit of using contract grading: Students learn multiple fundamental management concepts and skills experientially by engaging in the contract grading process.
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