The way it is handled at large research universities is through rigorous testing. They don't care if you show up to class, they don't care if you do the homewo

The way it is handled at large research universities is through rigorous testing. They don't care if you show up to class, they don't care if you do the homework, but the midterm and final are brutally difficult and count for 50-75% of your grade. You learn very quickly how much homework you need to do, or you fail. Personally, I find that approach far better than counting class exercises, participation, or any other subjective assessments.