Final answer:
A rating chain is established by an organization to assess the performance of its employees. It starts with the immediate supervisor and extends upwards to higher levels of management. The rating chain helps determine employee performance and can influence decisions related to promotions and compensation.
Step-by-step explanation:
In the context of business, a rating chain is established by an organization to assess the performance of its employees.
This chain typically starts with the immediate supervisor or manager and extends upwards to higher levels of management.
An example of a rating chain in business is a performance review process, where employees are assessed by their supervisors, who in turn are assessed by their managers, and so on.
The rating chain helps determine the overall performance and contribution of each employee and can influence decisions related to promotions, bonuses, and salary adjustments.