Final answer:
The time-based step-rate pay system used in U.S. civil service is based on grades and steps, meant to reward competency, education, and merit, promoting career progression and protecting against managerial abuse.
Step-by-step explanation:
The system you're referring to is known as a time-based step-rate pay system. This structure is predominant in the United States civil service, most notably represented by the U.S. Federal General Schedule. Civil servants receive salaries based on a pay schedule, which includes multiple grades and steps within each grade, reflecting the level of competency and education required for different positions. This system evolved from the Pendleton Act of 1883 to its more modern form, with the intent to create a merit-based selection process, ensuring that positions are filled by individuals most qualified and likely to succeed. This type of pay structure promotes personal growth, career advancement opportunity, and meritocracy—a system that rewards hard work and skill with upward mobility.
Merit-based systems are designed to protect employees from managerial abuse, encourage professional growth, and increase organizational efficiency by rewarding skill and hard work. Meanwhile, the General Schedule ensures that individuals with higher competencies and education can advance to higher grades and steps. Nonetheless, some critics argue that success in a meritocracy also depends on social capital, such as networking and connections, which can influence hiring decisions and career progression.