Norm-referenced grading is primarily ranking, but it can involve both.
Why primarily ranking?
Norm-referenced grading compares students against each other, not against a fixed standard.
So the main purpose is to determine relative position:
top 10%
above average
class percentile
rank #5 out of 80
That is fundamentally ranking.
Where rating appears
Students still receive scores/grades (raw marks, scaled scores, GPA, letter grades), which are forms of rating. But in norm-referenced systems, those ratings are often assigned based on ranking.
Example:
Top 15% → A
Next 25% → B
Middle 40% → C
So the grade (rating) comes from the student's relative rank.
Short answer
Norm-referenced grading = ranking-driven rating system.
Contrast
Criterion-referenced grading = rating based on fixed standards (e.g., 90% = A regardless of others)
Norm-referenced grading = rating based on position relative to peers i.e. ranking
If you're writing academically, I’d phrase it as:
“Norm-referenced grading is a ranking-oriented assessment approach that may produce rating outcomes such as grades.”