Hi, Companies assign designations based on an employee's qualifications, area of expertise, or work experience. The designation conveys an individual's role and position to other employees within an organization and to third parties. When a senior employee or manager engages with people outside the organization, their designation gives them credibility. Designations can influence opinions and help employees win clients and customers for an organization. Grades/designations are very important to get things done from subordinates. Cadres/grades are company-specific.
In many companies, there might be a senior employee who has been working in a supervisory role for a long time, even though they deserve a promotion. Due to a lack of requirements or internal politics, it doesn't mean that the employee is incapable. If the employee possesses the right skills, technical knowledge, and is good in management skills, then he/she deserves the position.