CREATIVECOUNT is an accounting services firm which operates in all 50 states and has over 10,000 employees. They are proposing the below HR policy. Where does the policy violate law and/or practical management?

A continuous improvement evaluation and layoff policy will be as follows: Each year, you will be evaluated by your immediate supervisor on the basis of your knowledge, skills and performance. If you score below expectations, you may appeal your supervisor's evaluation to your supervisor's manager. In the event that layoffs are necessary, they will be based on an employee's most recent evaluation.