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The concept of 'chain of command' refers to the established hierarchy of authority within an organization. It outlines the levels of management and reporting relationships, indicating who reports to whom and clarifying the flow of communication and decision-making processes. This structure is essential for maintaining order and ensuring that each level of the organization understands its responsibilities and the authority it holds.

In contrast, options that suggest lateral movement of employees or methods for evaluating performance do not encapsulate what chain of command entails. While teamwork and collaboration are important for organizational effectiveness, they do not specifically define the hierarchical structure that chain of command represents. Understanding the hierarchy is crucial for effective leadership and management within any organization, especially in environments like firefighting or emergency services, where clear lines of authority can impact safety and operational effectiveness.