Grading

I struggle with grading. Right now students earn 10 points a day (2-sitting in assigned spot, 2-positive attitude and 6-participation).

I understand the argument against grading participation, but I don't know how else you can learn musical concepts without participating. I am moving towards Standard Based Grading for overall concepts, but I still grade daily participation. In my experience, students who are participating usually have no problem being successful in music.

Students know they loose points, so it is then up to them to make a decision to participate or not. They know ahead of time what I am going to do in the situation that they choose not to participate. It has eliminated the power struggle to participate and has made class less stressful.

How do you grade students progress? Is it wrong to grade participation in a specials classroom?