LOL
In most schools it's like a herd of chicken-necked geeks establishing their pecking order. It's not done in a way that loses glasses or street cred every time. It's done through slapping and play.
Although generally I feel I don't need any ranking system, I've met a lot of people like NeuroGrrl who obviously feel much better with them.
And what Chris just said was exactly the problem I had with that school I mentioned. One woman who was above me had had an easy ride because she was a woman. She hated that she couldn't do anything she was supposed to be able to (she couldn't even finish the forms - the whole two of them! - without forgetting, let alone complete lack of any ability in putting the apps into effect) and was embarassed, and in fact kept comign to me for instruction because I was the onoly one who took the time not to mollycoddle her, but to teach her straight. But of course it wasn't my place to teach, just to give a rough guide to her as her senior... except... yep, as you've just read, she was my senior!
Confused? So was everybody there!
In sparring I was obviously streets ahead of everyone else but I came from a different lineage so all that political bollocks got in the way: my 'teacher' wasn't going to grade me too high too quickly despite already meeting his system requirements, but every newbie who came to watch couldn't help but notice that I was frankly, the best there, and kept asking me for teaching... which of cousre I couldn't and didn't want to do in the face of the teacher (who liked walking around the clas on his hands and **** like that).
He never failed anybody a grading because (I guess) they would get some of their money back.
Can we say McKwoon?! But as the teacher knew his stuff (he was just a lazy showoff who never bothered to teach) if the grading system had been legit it would've made a difference... but then of course if there'd been no grading system it would've too.