"A poor Performance Appraisal System is worse than no Performance Review System". How will you justify this statement?

Performance Appraisal is key in the organization in that it helps to motivate workers such that gaps of performance are identified and dealt with amicably between the employer and employees, supervisors or managers and their subordinates. It also helps to identify talents and boosts placement such that human resources are placed in the right positions in a given time. It also helps to take actions such as demotions, promotions etc. once the appraisal system is poor startegic decision regarding human resources cannot be taken