I worked at a company with a process like that when I was an "Engineer" looking for a promotion to "Senior Engineer", at least for me it felt insulting that I had 3 years of performances reviews "exceeding expectations" and "already performing at the level of Senior Engineer" to then be told, ok now you have to do an interview and a presentation to say why you deserve to be promoted to Senior. I declined to go through the process and then left a few months later to become a Senior Engineer at a different company.