19. The East India Company introduced a system of promotions based on merit
When the British East India Company was formed and throughout its first two centuries of existence, the vast majority of its positions were filled through patronage. The system strengthened its political position but weakened its administrative abilities, which became more and more critical as time went on. Beginning in the latter years of the 18th century, it introduced a system of promotions based on performance, supported by its training institutions in England. While promotions in its military remained largely based on seniority of time in service, civil positions became more competitive among those of proven ability.
It never fully eliminated the practice of patronage, but it developed a responsive and able civil service administration of sorts in some areas of India, which eventually served as the model for the British and Indian civil service in India. Nonetheless, throughout the period in which the EIC served as the government of its holdings in India, corruption was commonplace on the subcontinent, and in the offices of the company in London. Scores of English businessmen made themselves millionaires through their positions within the company, in India and in other areas controlled by their employers.