Hi Jolyn:
In it's basic form, a grading system should measure to what degree the student has learned the required material. Using course objectives, student learning outcomes, and master skill assessments (if applicable), the challenge is to come up with the best way to measure. Best, for me, suggests fair, effeicient, comprehensive, and representative of what was taught (not what should have been taught).
There are many measuring methods. A grading rubric can help assure some order of objectivity, but isn't applicable to alll settings. But it is important that to the degree possible, the students will know beforehand what will be assessed and what grading system will be used.
Regards, Barry