Grades and Designations are mere words that describe some concepts that an organization holds as far its Human Resource is concerned.
In common parlance, in HR, one should understand that a "Designation" should be indicative of the function or the job that the holder is expected to perform, and a "Grade" should describe the salary/wage, allowances and other benefits, if any, that all occupants of the grade will be eligible to receive.
It can happen that one Designation may cover multiplicity of grades depending either the seniority or competence of the individuals holding the designation, and its also possible there are can be many Designations to whom the same grade may apply.
For example, the designation "Executive" may cover grades, E-1, E-2, E-3 etc. and one grade, SS-1 may be applied to various designations like, Peons, Drivers, Assistants and so on.
The point to remember is that the hierarchy of both, the Grades and of Designations, represent , always the the order of significance the organization attaches to them.
Both have to be established in tune with Organization's philosophy, culture, capacity, and organization of work (i.e. functionalization) as also the organization of employment (i.e emolument structure and levels of significance to the organization).
I hope, this reply would clear your confucion about the words and the concepts. If it doesn't, raise further queries. Would be glad to respond!
Regards
samvedan
December 5, 2004