A monsignor is an honorary member of the papal houshold. Or as the joke goes, he gets a bucket and mop. There are degrees of monsignori. At the juridical department in Rome, it is still an essential, in practice, to make priests holding their particular position monsignors. In other places around the world, it may be appropriate to assign the title or merely a sort of honorarium offerred to add a certain semblance of recognition, dignity, respect to the priest’s position or service.
A cardinal is a titular priest of Rome. The College of Cardinals is the sucessive group of clergy to the early Church’s Roman Clergy who elected the pope. A cardinal also receives (in being elevated to that position) a parish in the diocese of Rome with which he is associated. There are degrees of the cardinaliate called “Cardinal Deacon, Cardinal Priest, and Cardinal Bishop.” These are not inherantly equated to the cardinal’s actual degree in holy orders, but rather realted to a protocol typically related to his position within the episcopal heirarcy. Traditionally, there are certain Roman offices whose heads are appointed cardinals. And there are specific dioceses in Italy and around the world which are of such significance that their bishops are also named. (These are usually referred to as “cardinaliate sees”.) And there may be notable bishops, priests, even laymen who the pope desires to include in this number as part of his collaborators. But, ultimately, it is all up to the personal prerogative of the pope. He can even make someone a cardinal “in heart”, without formally naming him and revealing his identity.
You are ordained a bishop after being appointed such by the pope. (Typically in order to fill a neccessary slot as an auxiliary bishop in a diocese or a vacant diocesan see). The pope can directly appoint (though the bishop elect, technically, has to accept his request to take on the assignment). However, usually, this is done after consultation and recommendations are made by the Congregation for Bishops. This Congregation has assessed the sitiuation and needs of the diocese and position requiring appointment, taking into account recommendations by fellow bishops as to who might be a good candidate. An archbishop would be essentially the same situation, except that if he is already a bishop being transferred then he need only be formally appointed (by papal bull) and installed in his new position of authority.
How do priests “move up the ladder?” Some would (not without some truth and good reason) derisively say, “Kiss butt and play the ecclesiatical political game.” Hopefully, there is often something more to it, though, which enables worthy priests who are recognized as humble servants and good leaders in making their journey up the ranks.