Like most instructors, I use tests, quizzes, classwork/homework assignments, demonstrations, and class discussions as a means of evaluation for my students.
One example of my favorite and most rewarding evaluation is the main project I assign in my computer class. I teach them Microsoft Office 2010 throughout the quarter; mainly Word & PowerPoint 2010. For their project, I have them create a 12 slide PowerPoint presentation on any topic they would like. I find that if the topic is something they choose and are comfortable talking about, especially in front of the class, they do very well and are really excited about their PowerPoint presentation design. I grade on their applied knowledge of PowerPoint and the overall formatting of the project. I give them a list of required items for their presentation, like bulleted lists, 1 embedded video and audio file, slide transitions, word art, 5 visuals, slide animations, etc. It is really successful and my students love it. After leaving my class, they continue to use PowerPoint as a primary tool of demonstration for other class projects. It makes me feel very proud and successful in that particular area of the class.