This is a common practice among sales organization here in British Columbia, as it was championed by Jimmy Pattison. He started in car sales, and now owns billions in assets here in BC. Having worked in sales, I understand the logic behind it. I disagree with it, but I understand it.

The mantra seems to be "when you have great sales, you can commit many sins". Not exactly the best motivator for an ethical institution.

An alternative, and more effective sales methodology IMHO, is Jim Collin's "Good to Great" https://en.wikipedia.org/wiki/Good_to_Great

You may agree or disagree with my views, but if you're a company that fires the bottom 10% on a regular schedule, I can promise you this: I will never work for you.