For sure. It's a good example of POSIWID: The Purpose Of the System Is What It Does. If the system ignores things like financial costs and productivity, then the purpose of the system is something else.

What it is good for in my view is making managers look and feel tough and establishing a culture of fear that is so necessary for hierarchical power structures. Power/status hierarchies are a common trait for most primates. So my shorthand for this sort of it-doesn't-make-sense situation is, "Primates gonna prime."