I think the fairest grading system (and the one I would want to be graded on) is something similar to this:
If they meet the following minimum requirements, they will get whatever the default score at the institution seems to be (P at some places, HP or H at others. Doesn't really matter since PDs mostly know what an honor from that particular school means):
1) Professional. (punctual, polite, dressed appropriately for that insitution/department, truthful)
2) Safe. This may mean different things at different stages of the game. For a medical student mostly has to do with realizing own limitations and calling for help. More senior students I would expect to be able to recognize certain clinical signs of potential badness and react appropriately.
Not meeting either or both of these should prompt discussions with student
during the rotation, with feedback on how he could improve. No one should be surprised with their grade. If they fail to improve after being given a fair warning(s), they would fail. Although I would consider a failing grade for a medical student to also be a negative reflection on the team (and myself if I am the evaluator) since truly hopeless people are rare. We are not in the business of training Olympic athletes. Most willing people can be taught most things.
To bump to honors the student would have to put extra effort of some sort. It would have to be clear what counts as extra effort. Possible options:
1) Powerpoint presentation of reviews of literature to the team/department
2) Outstanding knowledge of topics related to the care of the student's patients.
3) Being so damn good at everything that he actually decreases the resident's work. I realize this is very, very rare.
Or I could go with the donuts formula
