In my opinion, in order to evaluate students' academic performance, practical evaluations should be given more emphasis than theoretical exam. I think oral exams are subjective in the evaluation. Therefore oral exams must be "objective structured clinical examination" (OSCE).
The examination system of each course should be prepared according to the logic stated.
One of the important obstacle is the number (of the teachers and students).
It is better to give cumulative scoring of class performance, practical assignment, project based experiment and presentations, group discussion, scientific report writing; these all should be included 80% of the total score. Finally only 20% could be assigned for evaluating the student attentiveness toward lectures as MCQ type questing answering system. This type evaluation will be helpful to make them toward constructive thinking.
I feel that the students performance both in academic and clinical activities throughout the tenure of the course should be assessed. The overall performance of the student is thus judged, and this is definitely a better method than holding exams.
One way to assess if the student has learned and can apply the principles is to give each student a project which they should work on independently. This should be capstone project capturing all the main elements of the course. How well they perform in terms of creativity and problem solving abilities is a way to measure success rather than through final examinations.
A very rigorous but time consuming (lengthy) method could be a talk on a particular topic.
Here, the student might be asked to study, understand thoroughly and then deliver a lecture on a particular topic in presence of the teacher and other students attending the same class/course.
This is based on the assumption that a very good level of understanding is the basic requirement to be able to deliver a talk on a selected part of the course.