This is true for nearly all people that are well-hired.
It ignores the reality of the required process to handle bad apples. Even if a company is super-excellent-awesome at hiring, there will be the occasional employee who slips thru the cracks, and turns out to be a big mismatch for a job. So, then what?
You can try to move them to another job where they’re a better fit — IF you have the opening for same.
But if no, companies need establish a record of non-performance in order to avoid wrongful termination lawsuits. Performance reviews serve this purpose without putting the “bad employee” on the spot. It would be better if you could ONLY put the bad employee on a plan; but the safer legal thing is to put everybody on record, so that the bad apple can’t complain.
Sorry, but this is reality.
