The assignment of grades to students is discussed, and a grading process is recommended. The process begins with the separation of minimal and developmental objectives. Minimal objectives represent course outcomes that all students are expected to achieve; developmental objectives are more complex goals toward which students strive, but which few fully achieve. Student achievement can first be measured with respect to minimal objectives only, with a passing standard established. Criterion-referenced tests are well-suited for this purpose. Norm-referenced grading of separate instruments is to be used for developmental objectives. The proposed system is probably best suited to secondary school and undergraduate college classrooms where there is a need to use five or more grade categories. (SLD)