Competency-based language teaching focuses on explicitly defining learning outcomes and assessing students based on their ability to demonstrate mastery of specific competencies. It was developed in the 1970s for vocational education and breaks language learning down into functional topics and subparts that are systematically taught and assessed. Key aspects include using real-world tasks, modularized instruction, continuous assessment, and an emphasis on students successfully functioning in society. While it aims to make outcomes clear and instruction student-centered, critics argue it reduces language learning and can make learners too passive.