I didn't mean to imply they shouldn't, only used it as one of a list of examples in which civil service hiring is formulaic and not really open to personal opinion. That there are equations and rules for everything, and at the end of the process the "hiring body" is basically told who they have to hire for a given post, unless they can find a reason to disqualify that person.
Fair enough. I definitely agree with your broad point. My wife manages grants (many of which are federal) for a research institute and even though they aren't governmental themselves, just being federally funded creates many of the same circumstances you're talking about here. Being able to fire people more easily would not solve any problems: they need to be able to incentivize good work much more flexibly.