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Why competency, not grades, is the assessment style of the future

When principal of Templestowe College, Peter Hutton, was at school, like many of us, he was told that one day the esoteric-seeming knowledge he gained would be useful.
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There is another side to competency based learning. Vocational courses in schools where nationally recognised certification eg Certificate I Hospitality is provided are competency based.
They may not be taught or assessed (if certification is to happen) by a teacher who does not possess at least the certification level to be awarded. The certificate must also contain the competencies to be awarded even if the correct level certificate is held. The teacher must also have at least a Certificate IV in training and assessment (TAE).
The competencies of the TAE change regularly; the competencies of the certificates change regularly as training packages are revised. It costs a great deal of money to remain current with the certificates and competencies required to teach vocational courses across one’s career.
One cannot help but think that competency-based teaching is a method of turning the money currently expended in providing professional learning for teachers in a different direction.
Some more detail of what is expected of teacher training in this model would be of some interest.