https://en.wikipedia.org/wiki/Spoils_system
This then became the norm for several decades, gradually declining until it was formally sunset by a federal law prohibiting the associated practices:
https://en.wikipedia.org/wiki/Pendleton_Civil_Service_Reform...
And that system is the one that we had in place basically until Trump. But it should be made clear that it wasn't the civil service that made it partisan again - it was the incoming administration, by doing things like these:
http://www.npr.org/sections/thetwo-way/2016/12/09/505041927/...
http://www.npr.org/sections/thetwo-way/2016/12/22/506629695/...
And then, of course, there was the process of building the cabinet based largely on loyalty. The Trump administration (coincidentally, Trump is a great admirer of Jackson: http://www.salon.com/2017/02/19/trump-embraces-legacy-of-and...) had effectively revived the spoils system. The civil service responded accordingly.
Whether it's good or bad is a difficult question to answer. Like you say, there's a bungling fool in charge. If the crew is in mutiny, the obvious disadvantage is that the ship cannot be easily steered away from dangers... but the advantage is that it cannot be steered towards them, either. Sometimes, dysfunction is really better than energetic action towards the wrong goals.
But, yes, it does set a bad precedent.