Its a very true dichotomy.
Hey let's hire Ashok for this position! He's really good!
Oops, sorry. Bob Whiteman has been here for 30 years. He's just good enough not to fire but he has seniority so he gets first dibs on the job.
Hey, let's give Ashok a raise! He's really good!
Oops, sorry. Bob Whiteman has been here for 30 years. He's just good enough not to fire. It he's been here the longest so he gets paid the most.
The false dichotomy is assuming your choices are a massive adversarial bureaucracy or not making a living wage.