Ever felt life isn't fair? Ever felt why someone less deserving then you got something you think you deserve? Ever felt why the management thinks highly of someone when you can easily find any Tom, Dick or Harry to be far better than him? If someone is more deserving and got a promotion, you will gracefully accept right? Anyway, under perfect meritocracy, maybe there is fair competition where the better succeed.
Unfortunately, life isn't that as simple as meritocracy. It took me 27 years and a book by Nicholas Taleb, titled Fooled By Randomness to realise the need to differentiate a deterministic event and a random event. Failure to do so will make life seem unfair to you.
A deterministic event is one whose outcome is controllable. These types of events are normally characterised by few inputs that determine the output. Ability to repeatedly control and process the inputs to produce a desired output, the result is seen as a skill.
A random event is one whose outcome is not predicable, let alone be controlled. These types of events are normally characterised by many inputs that determine the output. Ability to produce the desired results can only be seen as luck, though the happy guy might try to smoke his way through at his ingenuity in triumphing the odds.
Perfecting the art of spinning the roti-prata is skill because it is difficult to imagine the hawker getting a good one by luck all the time. Guessing the PSI is luck, considering the sheer number of factors to consider, wind, rain, number of fire starters, politics etc.
During the good old school days, life was simple. Grades can be simplified as a function of intelligence and hard work (effort).
result = f (intelligence, effort)
Though you can't choose your intelligence, you can put in more effort to make up for it. You can't beat the intelligent hard worker, but you can earn some decent grades to define your existence. This is an example of a deterministic event. You reap what you sow, right? Yah.
When it comes to working, things get a little, or rather very complicated. Success in the work place, in your career is not just a simple function of a few variables, it much more complicated.
result = f (intelligence, looks, charisma, effort, colleague-colleague relationship, colleague-boss relationship, opportunities, office politics, local politics, global politics, local economy, global economy ... )
Still think the result is deterministic? Let's have a thought scenario:
You might be smart, you might be willing to work hard, but when you graduate, the economy just recovered, the companies are not employing yet, you think you better settle fast for any decent job else you might die of hunger. Finally, with luck or skill you found a great job with great prospects.
You take up the job with great endeavour. You trade you time, your soul and pour all your brain juices in. The promotion, the increments should be coming your way soon. First year, nothings came, you preserve. Second year, nothing too, you get a little agitated but still preserve.

Other than intelligence and effort, there are so many factors that contributed to his success and your failure. This guy is better in handling office politics? He have a better relationship with the management? He has an opportunity to work on something that caught the attention of the management? The boss just likes him for some bizarre reason? You will feel unfair if you think working IS deterministic. However, if working is not deterministic in the first place, i.e. another random event, what is there to feel unfair about. You can increase your odds of success by trying to control as many variables in the above as possible, but nature have a habit of choosing someone to strike Toto no matter how small the probability is, and the person is not you.
In fact, education is probably one of the few events in your life that is deterministic. Work is random, raising a child is random no matter how hard you discipline or teach. Health is random no matter how careful you eat or how hard you exercise. Relationship is random, no matter how much tender loving care you put in. However, though you can't control the outcome, you can dramatically increase the chance of success in each of the above undertakings if you do put your heart to it.
Life is fair to those who see it, it's unfair to those who don't.
Image sources (from the top):
Figure 1: Thundercloud (http://www.cartoonstock.com/directory/t/thundercloud.asp)
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