Often, the original intent for such a system being deployed is positive and genuine. The person(s) wants to help improve culture and individual behavior.

However, the system doesn't stand alone. Giving and receiving good feedback is a skill. Coordinating, interpreting, and using it is a lot of work and generally it takes good managers to really make all this work. It's difficult and takes a lot of time.

So, when time gets tight or the good manager gets tired, everything will regress. At best it becomes a chore for everyone. At worst it becomes negative leverage used by HR or people with an agenda against you.