What instructional approach focuses on teaching skills in natural settings and assesses their application through observation?

The instruction approach that emphasizes teaching skills in natural settings and assessing their application through observation is community-based instruction. This approach is designed to provide students with real-world experiences and opportunities to practice skills in environments where they would naturally occur, such as in the community or through extracurricular activities. By engaging students in these authentic contexts, teachers can observe their ability to transfer learned skills to practical situations, which is crucial for their overall development and independence.

Community-based instruction also fosters meaningful interactions and supports the generalization of skills across different settings, enhancing the student's ability to function effectively in everyday situations. This method contrasts with more traditional teaching practices that often occur in controlled classroom environments and may not provide the same level of practical experience and real-life application.