Relative grading is based on

Relative grading, often referred to as "grading on a curve" or norm-referenced grading, fundamentally bases a student's performance on how they compare to their peers within the same group or class. Instead of evaluating against a fixed set of standards or learning objectives, the distribution of scores among all students determines the grades. For instance, a certain percentage of top performers might receive an 'A', the next percentage a 'B', and so on. This approach assumes a normal distribution of abilities within the group and can be particularly useful when the difficulty of an assessment might vary or when there's a need to differentiate performance within a cohort. However, it can also lead to increased competition among students, as one student's success might implicitly affect another's grade. It contrasts sharply with absolute grading, where each student's achievement is measured against predetermined criteria, irrespective of how others perform.