The Good Shepherd Separates the Sheep from the Goats

On the Last Sunday of the Church Year the focus is on the return of Jesus on the Last Day for the Final Judgment. Jesus separates the sheep to His right hand and the goats to His left. What is the meaning of this? Some have seen this as support for good works playing a role in our salvation. But of course this is not the case as we are saved by grace through faith. We must examine the meaning of Jesus' teaching here.