"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."