On top of that, it's not effective. The idealistic idea that competition breeds productivity and effectiveness is a flat-out lie. Instead, you get in-fighting, unfairness, bitterness, resentment, and incorrect direction. Even in a seemingly simple procedural job like a production line, gamification and management by objective leads to the wrong results. It is extremely difficult to correctly align the objectives with the true goals of the company, and especially difficult to produce quality output.
Instead, what companies need is good leadership, clear communication of common purpose, and ways and motivation to improve both individuals and systems of production constantly. There is no replacement.
Start here: http://en.wikipedia.org/wiki/W._Edwards_Deming
I'm quite happy to see the natural rejection of this entire industry, it inspires confidence.