As a business school activity, grading is understood to include the process of making judgments about the knowledge or lack of it among students. Generally a domain of faculty, grading has always been a big issue both among faculty and students, and also at the institutional level. Based on a focus group discussion and utilizing insights of the qualitative characteristics and the conventions of accounting theory, this paper presents a framework for grading in management education. This framework suggests that strategies for correct grading should also take into consideration the institutional viewpoint and students perspective, apart from making grading a reliable and relevant exercise in itself.