Education evaluation system: Ranking vs Grading

Our education system is so competitive that we forget to treat kids as kids . Everyone wants their kid to get the 1st rank in class. There is so much pressure on the kids to beat each other to get that prized rank . How can this madness be solved ?

In lot of countries, they use a grading system . Kids are put into A,B,C,E or F grades . There is no ranking involved . Kids are encouraged to get the A grade and not beat the other guy to the 1st rank .This eases the pressure on the kids .

Our education system should adopt this system and let kids be kids . I wish that it was that way when I was a kid.