Final answer:
The recommended procedure to reduce detrimental effects of grading on students is to provide ungraded assignments to foster a growth mindset and encourage exploration without the pressure of grading.
Step-by-step explanation:
Among the procedures mentioned, giving ungraded assignments to increase exploration (Option B) is recommended for reducing the detrimental effects of grading on students. This allows students to engage in learning without the pressure of grades and fosters a growth mindset. In contrast, grading systems solely based on competition can have negative impacts, such as grade inflation, where the true achievement levels aren't accurately reflected by grades anymore. Innovative measures such as norm-referenced and criterion-referenced grading, mixed assessments with both multiple-choice and essay questions, and breaking complex tasks into smaller steps are methods that could support student learning while maintaining healthy incentive structures.