Final answer:
The patronage system is the hiring and promotion practice based on connections and political loyalty. It was largely replaced by the merit-based civil service system after the Pendleton Act of 1883, which introduced competitive exams and qualifications as the basis for government employment.
Step-by-step explanation:
The hiring and promotion system that is based on knowing the right people, working in an election campaign, making large political donations, or having the right connections to win jobs within government is known as the patronage system. This method tied the livelihoods of civil service workers to their party loyalty and was commonplace in the United States until the late 19th century. With the implementation of the Pendleton Act or Civil Service Reform Act of 1883, the federal government transitioned from this spoils system to a merit-based civil service system. The merit system helps to ensure the most qualified applicants are given positions and it reduces the influence of political loyalty in bureaucracy, however, it also creates bureaucracies that could be less responsive to the will of the elected leaders and the public.