Laws are not algorithms, because a human legal system has wiggle room. You can negotiate, persuade, and the system is capable of dealing with unanticipated input. An algorithm is a strict series of steps, executed based on pre-determined allowable inputs. They are preferable to the ones defining them because A) they can be automated and B) they deflect blame: "It's not my fault, it's just policy" or "it's just the way the program works". They thus act as a proxy for the ruling class to operate through.
"Values" are ideas that we, as a society, "value". Compassion, understanding, etc. These tend to involve nuance, which a system designed in advance and applied blindly to a given circumstance inherently lacks.
Thus, in case you aren't simply feigning ignorance, the title could be expanded to: "When individuals with existing power over others design rigid systems to be applied indiscriminately to those beneath them for both convenience and to redirect the perception of responsibility, it leads to inhumane consequences."