Standards Based Grading

I have gotten a lot of questions about the concept of standards based vs. traditional grading. Apparently, this concept is really throwing some people for a loop!
Here are the basics:

Traditional Grading System

Standards-Based Grading System

Based on assessment methods (quizzes, tests, homework, projects, etc.).  One grade/entry is given per assessment. Assessments are based on a percentage system.  Criteria for success may be unclear. Use an uncertain mix of assessment, achievement, effort and behavior to determine the final grade.  May use late penalties and extra credit. Everything goes in the grade book - regardless of purpose. Include every score, regardless of when it was collected.  Assessments record the average - not the best - work.

Based on learning goals and performance standards.  One grade/entry is given per learning goal. Standards are criterion or proficiency-based.  Criteria and targets are made available to students ahead of time. Measures achievement only OR separates achievement from effort/behavior.  No penalties or extra credit given. Selected assessments (tests, quizzes, projects, etc.) are used for grading purposes. Emphasize the most recent evidence of learning when grading.

Adapted from O’Connor K (2002).  How to Grade for Learning: Linking grades to standards (2nd ed.).  Thousand Oaks, CA: Corwin Press.