Clearly, I'm preaching to the choir here, but... I am constantly amazed at companies that do this. Effectively, they're incentivizing their workers to sabotage their coworkers. It is in every worker's best interest to make sure their coworkers perform as poorly as possible; ie, you don't need to be faster than the bear...
Long term, that seems like a fairly straightforward way to make sure you get poor performance out of your workers.