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This system of evaluation is not doing justice to the employees' work. Those who are good are getting fewer scores, and those who are not good are getting higher scores. The system does not reveal good/bad traits in a fair, proper, or just way. It does not show the merits of the employees properly.

This system is ------ .

nonfunctional? unfair? non-revealing?

Of course, unfair may work but it seems as there should be word that are more to the point for such circumstances.

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    It's ineffective in the sense it does not serve the intended purpose. However, there might, just might, be a better alternative. Let's see what the others have to say.
    – Kris
    Commented Nov 22, 2018 at 7:42
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    It might well be true, those who are good are getting fewer and those who are not good are getting higher scores. What evidence is there? It might well be the system does not reveal good/bad traits in a fair, proper, or just way nor show the merits of employees properly. This system is inadequate… Commented Nov 22, 2018 at 21:15

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Dysfunctional is the first word in my mind, [edit] the old Oxford link has now been replaced with a simple definition, that has less merit :-) or as pointed out by @KnotWright below "Unmeritocratic"

There are many other words to describe something that's unjust or meritless , but trying to find an individuals connotation becomes more difficult. Demeaning is one word often applied, for when one is organisationally devalued.

The nearest I can suggest to injustice is to look at alternatives to iniquitous or irrational and for meritless we have reasonless or unreasonable

Looking at your wider context it is possibly best to say "This system misjudges the value of..." or "This system is unprincipled, because it is not guided by, or showing a concern for what is right"

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  • I am looking for something that particularly means "not doing justice" or "not revealing merits".
    – Sasan
    Commented Nov 22, 2018 at 2:02
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    Unmeritocratic is technically correct, but clunky and difficult. en.wiktionary.org/wiki/unmeritocratic
    – KnotWright
    Commented Jan 25, 2023 at 18:50
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Specifically for a system, you can use biased or skewed. (There are other words more suited to humans like prejudiced or even unfair, for example).

This (employee performance evaluation) system is biased.
This (employee performance evaluation) system is skewed.

ODO:

biased ADJECTIVE
Unfairly prejudiced for or against someone or something.

‘The charge that its review process is biased against right-wing nominees is manifestly false.’

skew VERB
2 [with object] Make biased or distorted in a way that is regarded as inaccurate, unfair, or misleading.

‘The legal system is skewed towards mothers and, as a result, some women abuse this for their own means, she claims.’

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