Hi Unnati,
Employee grade should describe the salary/wage, allowance and benefits , if any, that all occupants of the grade will be eligible to receive.
If there is an appropriate salary structure defined in your organization then it is easy to set-up the employees grade...
For eg: let's consider the Exceutive Position
You can grade them based on experience & salary
E1 GRADE - Senior Grade - 3-5yrs exp 15000-20000
E2 GRADE - Grade I - 2-3 yrs exp 10000-15000
E3 GRADE - Grade II - 1-2 yrs exp 7500-10000
It is also pausible that one Designation may cover multiple grades depending the seniority of the individuals holding the designation, and simultaneously it is also pausible that, there can be many Designations to whom the same grade may apply.
Like in the above designation "Executive" we have covered grades viz:
E-1, E-2, E-3 etc. and one grade, AA-1 may be applied to various designations like, Peons, Drivers, Assistants and so on.
I hope this might help you, if it dosen't, raise further queries. Would be glad to respond!!
regds,
sushma