I know that practice is now typical in companies, but it's morally indefensible. Having "Don't Be Evil" as a motto is no excuse. I think Google is a great company in many ways and I have a lot of respect for the engineers I met there, but the people who designed "Perf" belong in jail for the billions of dollars of shareholder value that they torched for no good reason.
Have a bad year, get "underperformed". (I dare anyone to have a long career without having a bad year at some point).
Ding! Now it's really hard to move until you've scorched that badness from your record. Your mission is to get a bunch of good reviews, or get promoted, or find a sympathetic ex-manager who's willing to hire you anyway (this is why you need a network, and one reason why the "patron" mechanism emerged -- the patron model compensates for a broken review system and a bunch of busted policies that surround it).
I've been in the software biz 30+ years and I've had really horrible reviews 3-4 times. It can be devastating if you're in an organization run by robotic principles. [btw, I'm not a bozo. You only have my word for that, I know . . . but I'm not :-) ]
Making the review part of the transfer packet is one of the worst corporate "innovations" designed. It's not just mean-spirited and immoral (because it gives managers a way to keep people captive). It also makes the review process totally pointless. An honest review needs to be between the manager and employee. Here's what you did right, here's what you did wrong. If it starts having long-term effects on the employee's career, then you can no longer have an honest review process because the stakes are too high. There are two options. (1) Give everyone high ratings they don't deserve, so your employees still like you, making the "review" pointless. (2) Give a few bad ratings, and turn no-fault lack-of-fit cases that would usually be resolved with transfer into outright wars that burn up a lot of time and energy and generally hurt the company.
More to the point, if the subjective performance metric rewards the latter and punishes the former, the net result is more features AND more bugs.
In other words, it's crap wherever it occurs.
Microsoft was destroyed by stack-ranking and the global visibility of political-success review (I mean, "performance review") history. Are you seriously trying to use Microsoft to make a case?
This is the first time I've heard that term.
Wait, isn't it the shareholders' risk of investing in a company that torches money for no good reason?