No. If that wasn't bad enough, that same system requires managers to rate a certain number of worker as sub-standard each year even if they already fired all their sub-standard workers during that same year.

And that gets to the rub of the problem: A good manager will recognize and get rid of bad employees.

A rigid system that codifies the assumption that managers are doing a bad job will force them to do a bad job. For example, by having to choose between putting good employees on the chopping block, or always keeping around a pool of bad employees (as a buffer to keep the good ones off the chopping block).

Wow that's hilarious and depressing at the same time. Intentionally maintaining a buffer of bad employees to keep your good employees around is the pinnacle of big company crap culture. If I ever have a company large enough for this type of problem I'll make sure that every manager can anonymously warn me if they start thinking like this.