Many top business schools today have grade non-disclosure policies that stop employers from asking about grades and stop students from sharing their transcripts. The students love the policies because they claim it increases collaboration and teamwork, but my own experience suggests that the students also love not working hard. The undergrads at a place like Wharton (who have grade disclosure) often look for classes with loads of MBA students (who don't) because the MBA students pull the curve down.
When people are going to school to learn, I don't think removing grades will hurt performance, but learning can suffer when people go to school for credentials and a job. Career-oriented students seem to listen and learn more when there's a meaningful grade waiting for them at the end of the semester.
I don't give a shit about my grades, but I still go to class and work hard because I want to learn more. I want to be the best. This is because, ultimately, my success in the startup world will depend on what I learn.
When people are going to school to learn, I don't think removing grades will hurt performance, but learning can suffer when people go to school for credentials and a job. Career-oriented students seem to listen and learn more when there's a meaningful grade waiting for them at the end of the semester.