Government is a little, but only a little different.   Your general hierarchy is correct even in government; the government jumps at the chance to get rid of the true ne'er do wells.   The just show up types are generally next.   It also happens in what passes for the private sector these days, but once you get past the obviously worthless ones, it becomes a much more subjective matter, and writing the right checks or sleeping in the right bed means a whole lot more in government.   What you describe is more true of small work units, even if they're a part of a big company.   I assure you a large corporation can contend with any government for inefficiency and general stupidity.   Big is generally bad, and the key to having a relatively efficient large organization is to have it divided into small and individually manageable work units.   If there isn't one person in charge, there is nobody in charge.