Banding System In Software Company

I would like to know the difference between banding system and grading system. My boss asked me to develop a performance based grading system in our IT company. As of now in HR related policies and appraisal system the company is in developmental stage. Currently we have around 60 employees . CEO, CTO, 1 project manager, 1 technical manager, 1 HR manager,Hr Executive,7 team leaders, 37 software engineers, 10 junior engineers( with less than 6 month exp). Kindly give me an idea regarding the above mentioned matters.

\'Grading\' system refers to steps on a scale such as Outstanding, Above Average, High Average, Average & Below Average. Some IT companies use the grades: Exceeded expectations, Met all Expectations, Met some Expectations & Below expectations.
For more clarity, you may search for \'EmpXtrack\' on the web which has helped many IT companies to set in appropriate appraisal systems in their environment.