In Germany this depends on the university, and possibly also on the subject. I know of universityuniversities that still have a chair system officially.
I also know of a university in which the chair indeed is the superior of assistant and associate professors in the sense that they are in charge of the chairs full budget and also of the budgets for associate and assistant professors. But I also know universities that do not have the chair system (both officially and practical). However, I can't tell which system is more frequent… I tend to think that chairs are more frequent in Bavaria but I may be wrong.