I'm not sure it's fair, though I'm not sure how much fairness I want in business. We don't have a lot here, with plenty of poor decisions by managers because they have their own inherent prejudices/attractions/etc.

I think this model can work in sales because we do have sales people falling down and you want to get rid of them, and reward the high achievers. however, when you get a good sales force, do you still want to get rid of the worst one? You might end up with an even worse salesperson.

I don't like this system, but I especially don't like it in technology, accounting, probably a few other areas.