For instance take the transfer process that was being extolled. The incentive now is for managers to evaluate their best employees poorly, and mediocre ones highly so they will keep their best and lose their worst. Many people who have worked in large companies have seen this first hand.
Secondly there is a very real problem of fit between the person and the job. If a person is not doing well, and the problem is fit, then the transfer restrictions will leave no place for that person to go but out of the company. As a concrete example I offer SRE at Google. They need an unusual mix of "able to program, but sysadmin mentality". So Google tends to hire one skill set and hope that they get the other. But when they don't they may get a perfectly good software developer in a role where they won't do well. This is a loss for everyone.
The result is that even well-intentioned and supposedly good processes result in routine bad decisions. If this bothers you, then you probably do not want to work in a large company.