Exactly, but only for the ranks of O-4 and above. All qualified personnel can be promoted to O-2 and O-3.
What yoyodyne said. Promotion in the military is very competitive, and for commissioned officers, the system is indeed “up or out.” For the officer ranks, the U.S. military has no place for those merely “competent” at their current grade. Commanding Officers are required to evaluate their personnel against an absolute standard, and are also required to rank all of their personnel (at a given grade) from best to worst. If an officer gets ranked as the worst in their peer group, their career will be short.
Exactly. There is a lot of “trial by fire” for the various jobs an officer gets. Failure to perform will result in poor evaluations, which results in failure to promote to the next level.
For the Navy, once you get past the Division Officer level, not only do you have to get selected for promotion to higher ranks, you also have selection boards to pick which officers get assigned as the Department Heads on a ship, as well as Executive Officer (XO) and Commanding Officer (CO).