The annual review process is rigged. It is all based on a preset curve. Someone has to be on top and someone has to be on the bottom. This means that even if a department has a team of excellent employees the managers are forced to rate someone as Needs Improvement (NI) even if they don't deserve this rating. If the managers don't pick someone or fight back against the low rating of someone who doesn't deserve it the VPs and HR get involved and force the decision. Depending on the size of the department it may be more than one who is unfairly rated. This has a direct effect on an employee's bonus and merit increase and has been used as a way for a manager or VP to get back at an employee they don't like or want to see leave. It also controls overall costs for the company. It helps to hire new employees with the "promise" of a bonus but then rate that employee low enough so they don't have to give it to them at the end of the year. Money saved-employees lose.