Several kinds of performance management system such as mandatory percentages for each rating level ARE bullshit, but without performance management of some sort any organization with more than 3 people will fail.
I think we need to embrace the idea that whether you are given raises, promotions, continued employment, etc is largely a function of whether your manager likes you, likes having you on their team, and wants to reward you. And if they don't like you, it doesn't matter how good your numbers are now they will find a way to get rid of you sooner or later. It's better to just get it over with, give the employee a generous severance package, and part ways (or transfer them to another team that's interested in them).
Also, a well built subjective review process is better than no process, for instance, using peers and customer opinions as input.
However, if the company’s priorities change, significant on-call issues arise, the design team experiences a layoff, the front-end team undergoes an exodus, and the product team abandons the project, you will not meet your objective. Any one of these, or more could happen.
Consequently, you will be considered a low performer. You could have kept the ship afloat, kept the trains running on time, and deployed your part of the project on time and under budget, but still be a low performer on paper.
But what I think most of us have experienced, in most companies, is that instead of driving compensation and promotion/firing the middle-management decisions around those things are made and then post-hoc justified via the performance system.
Which is another symptom of HR not having real power and instead simply being used to implement decisions made by other leadership.
Keep that in mind when anyone talks about how vital performance evaluations are. Management can’t even figure out non-bullshit ways to evaluate their own work.
This isn't how it ever, ever plays out.
Also, most companies implementing this clearly are doing so out of some sort of compliance, whether it be SOC or otherwise. So yea, lots of times it actually is total performative bullshit. Congrats on finding the .000000000001% of cases where it isn't, if you are being serious here.
There’s a kind of tradeoff here, where on one end you have the most useful performance measurements, and on the other end you have the most objective performance measurements. When you’re doing things well, the best you can do is fall somewhere on that line. The entire line is bullshit, you just get to choose what kind of bullshit you have.
Large orgs tend to skew towards objectivity because it minimizes liability, and large orgs are full of people trying to avoid being liable for mistakes.
But performance reviews are still bullshit. You could replace them with 'vote off the island' style votes every quarter instead and we wouldn't be any worse off.