I'm not sure where' you're based, but that's certainly not the case where I live. I once worked for a company that made grading software. I quit after 3 months because they wanted to implement features like, "Teacher wants to be able to change grade to a specific letter, even if student's scores add up to a different letter grade." (In other words, even though this student received an "A" based on test scores, I want them to have a "C" instead. Or vice-versa.)
He still kept his job because majority of the class got 4+'s on those exams, despite at least 1/3 of his class getting D's and F's.
I wouldn't generalize editing letter grades as a way of "cheating the system". There's usually good intentions in every act.
Do you truly believe this? In my career experience, success is highly correlated with merit. Sure, I have seen plenty of incompetence at high positions, and I've seen brilliant people who received little success in their careers.
But overall, I'd say the correlation is very high.
Edit: what a coincidence this is on the front page right now: http://theconversation.com/huge-success-in-business-is-large...
Obviously at the very least some advancements happen due to merit and due to that, there is a correlation.
One could say that in the work place, success is uncorrelated with merit.