The manager shall establish rules governing the employment, classification, transfer, promotion, demotion, discipline, discharge, and other matters affecting classified employees under his supervision and control. The rules and amendments to them shall be effective when filed in the office of the recorder and the notice posted in a conspicuous place in the city hall. The rules shall have the same force and effect as if adopted by ordinance, provided that they are not inconsistent with any other city ordinance or labor contract approved by the council. The rules shall establish a system of merit rating and rules for administration of the system.