
One key characteristic of the merit system is that unlike set pay increases and promotions, the merit system runs off of your performance in the particular job. If you do well and exceed your peers, you get a raise that reflects that.
The structure of the federal bureaucracy is almost like a triangle. a few people on top and the majority on the bottom. Few leaders control everything and the power flows downward. Newer, less experienced employees are on the bottom, with the ability to rise up based on merit.
Everyone in some way can affect bureaucracy and make sure it stays in check. Congress can pass new legislation that affects the bureaucracy. Interest groups can also affect it in a non direct way. By holding media events, protesting, and lobbying. The courts can restrict the bureaucracy's freedom by implementing ruling that makes it hard to do whatever they want.
http://apcentral.collegeboard.com/apc/public/repository/ap10_us_govt_politics_q2.pdf
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