Earlier quoted context omitted.
Pretty much all companies have levels. Even if it's not something as set in stone as Google's 1-11, or Microsoft's 59+, there's almost always some sort of differentiator, from something as small as "Senior" or "Junior" to denote experience.
But that can kill all innovations. Especially, when junior can't report or discuss ideas with the manager, who can make decisions
At Google you were basically expected to make all the decisions you had good information on, and you had access to a lot more information than people did at most companies. I launched the [blink tag] easter egg by socializing my ideas around a few peers who said "Cool idea, go for it", implementing it in my spare time, getting a code review, and then e-mailing PR, legal, and Amit saying "Hey, I'm planning to launch this easter egg in a couple weeks, any objections?" I had approval powers for putting stuff up on google.com myself, so in theory I could've launched it with just one other person's code review, but if you launch without approval and things blow up you (and your peers) will never ever be able to do cool stuff again, so it's a nice courtesy to keep the execs in the loop. (Although this rule has been bent before - [do a barrel roll] was launched without any execs' knowledge.)