Performance reviews are garbage. They are not needed. They exist as a way for the capital-owning class to remind workers that they are seen as subhuman and will be thrown back on the streets the minute they are no longer seen by their masters as productive.

If someone needs to be fired, you don't need to put them through a humiliating process. Explain what happened and why, give them a decent severance and a good reference, and say goodbye.

PIPs are a way for executives to externalize costs of firing unto the team (which has to deal with wrecked morale, an overtaxed manager, etc.) while claiming they "saved money on severance" by firing or force-quitting people for free.

In the case of average performers, reviews are harmful because they prevent a person from being able to reinvent themselves.

In the case of high performers, they are not really needed because they should know in other ways than being told, "You're a 4.3 and will stay a 4.3 as long as you don't annoy me", every year.

And for managers, they consume an inordinate amount of time and make people unhappy. No one wins but the highest of the higher-ups who profit by pitting working people against each other.