Seen this as well. Does somebody in management really expect leadership roles to sit down every 6 to 12 months, discuss everything their employees have done, and do it objectively? That's a fast track to giving everybody but the absolute worst a 5 out of 5 every time.
I'm a big proponent of the one-on-one approach, and giving feedback as needed. I am curious, however, typically the review cycle is correlated with the raise and bonus cycle. How would you go about handling that process with the data points that the review cycle provides, however artificial they may be.