Private Sector Companies: Selection and Review process-broken?

I have been through SSBs of Army and Para Military forces. Have got selected and offered by Central Police Organisation's Border Security Force for Class 1, Gazetted Officer. I have always seen them carrying an assessment Centre for selection comprising of several rounds of interviews, Psychometric rounds, Group discussions and presentations. All this is done when a panel is available to assess and evaluate.

Unfortunately in Private Large or Small companies, it all starts and ends as individual interviews and personal liking or dislike is what plays the key role in assessments.

Have you ever heard the word, 'Hiring Manager' in the public sector selections?
Word and phenomena of hiring manager is great if implemented alongside Neutral Assessment Centre and just not left hiring to the Hiring Manager's wish and comfort. Hiring is a corporate decision and that should be challenged and appealed against. There is requirement of Ombudsman for hiring in all companies, where candidates who appeared for the process or those who were eligible shall ask for clarifications and complain if they fear, the process carried was not fair and transparent. I am asking for Ombudsman for companies that are listed on stock exchange anywhere in the world.

In private sector, many positions are opened and closed without proper search and selection process. One suspects that going around and process followed in selection.

A neutral body selects candidate and puts him/her to the department and then he gets a Supervisor.
If supervisor is given to recruit, there are high possibilities of him playing favorite or his card.

I have heard 100 times in my career, a sacrosanct advice from colleagues and seniors that, "do not hire a guy smarter than you", "It can be a threat to you". Private sector is full of such scenarios and people who are non-intimidating and threatening to the boss. Less smarter or rather a timid guy, who can wag his tail and shall be told to do what his manager wants him to do and not do, without even asking, any suggestions or advice.

This is a disastrous situation as it has filled companies with more of timid and suck-up guys and on top of it, we all cry, we have no leadership available in companies. Leaders are not hired. They are kept at bay as they will create a culture of competition, performance and success, which will force their bosses to get out of comfort zone. The divine, orgasmic inertia. We all know B and C players love and create status-quo. Create ways to tell why things will  not work fast and improve. They will cite policies and approvals as weapon to keep work aside.
When I see frustrations of Microsoft employees against forced ranking and gagging policies of rank rating, they are clearly indicating, the policies are archaic and broke! HR leaders and top management are creating environment for in-fighting and misguided- assessment and development. No wonder, we have not seen a single successful product coming out of Microsoft in past decade.

Please do not make hiring for your company, your private affair. In the interest of the company, personal agenda kills company.