The paper examines several basic grading procedures, noting the advantages and disadvantages of each procedure for handicapped students. Eight alternatives to grading are mentioned; of these, four are considered: (1) contract grading, (2) pass-fail grading, (3) the mastery learning approach, and (4) written evaluations (including checklists). It is suggested that a more appropriate approach than any of these commonly found practices must be worked out on a building level. Samples of grading proposals are provided which may be useful to vocational teachers, including a pass-fail system based on competency achievement for a post-secondary program with suggested time parameters of 6, 9, and 12 months; a proposal combining grading with a weighting system; and a framework consisting of a set of assumptions and a single learner progress chart. (CL)