Final answer:
The Civil Service Reform Act of 1978 reduced political influence on civil service employment, required competency exams for qualifications, and established the OPM and MSPB to oversee the merit-based system.
Step-by-step explanation:
The Civil Service Reform Act of 1978 was significant because it enacted several critical changes aimed at mitigating the influence of politics in civil service, enhancing the merit-based system for employment, and restructuring the federal agencies overseeing civil service. Firstly, the act made it illegal to fire or punish government workers for political reasons, protecting employees from partisan retribution. Secondly, it strengthened the qualifications for employment by mandating competency exams. Thirdly, it led to the creation of the Office of Personnel Management (OPM) and the Merit Systems Protection Board (MSPB), dissolving the previous United States Civil Service Commission. The OPM is in charge of hiring procedures, whereas the MSPB investigates agency misconduct and hears appeals. These changes aimed to address concerns of bureaucracy and promote efficiency and integrity within the federal workforce.