I believe these kind of systems are implemented in much smaller companies as well. The last company I worked at started implementing mechanics to determine role

I believe these kind of systems are implemented in much smaller companies as well. The last company I worked at started implementing mechanics to determine roles and payment when the company grew to 40 people or so. The system that was introduced annoyed me, since it seemed to favor people in a management roles and also with a Masters. The system was created by consultants on behalf of my employer. To me the system felt like me being a horse with a carrot held in front of me. I guess it's true what's being said about engineers and herding cats. Engineers do want a personal treatment. This rewarding system was one of the reasons I decided to leave later that year. It seems the turnover inside said company has increased shortly after I left, perhaps other people felt the same.