I think this often papers over the tension instead of resolving it. The best way to resolve the tension that comes from doing a poor job is to do a better job. The second best way is to find a better job (within or outside the team/organization). I realize that sounds heartless, but I believe the first is usually possible (assuming competent hiring) because most people want to do good work. If you disconnect the career manager from the work being done by the employee, you make it harder for good managers too effectively redirect their employees, which results in worse outcomes.

And the same structure prevents accountability, promotes political infighting and causes a misalignment of objectives all around. I hated every single minute of working inside such organizations.

The elephant in the room is that there has to be a level of tension, of slight mutual discomfort, of a bilateral transaction present in employer-employee relationship. It needs to be very dull and implied but it has to be there to make sure incentives are aligned and objectives are consistently met.

Tenured public service and unions show what might happen when this inconvenient element is missing.