In economics this phenomena in general is called perverce incentive. That is, someone tries to put in place an incentive to reward for productive behaviour but in the end a "workaround" is found to comply with the incentive criteria by doing something very counter-productive.
Doing coding? One organization decided to start giving bonuses to coders by lines of code written. Suddenly all this extra whitespace appears out of nowhere and when looking into your favourite VCS you'll see same lines having a lot of small cosmetic changes changes all over. What an increase in productivity!
Want to make company more profitable? Why don't you give the new CEO incentives that are bound to short-term profits. No way (s)he will do cuts that rise profits momentarily but neglecting long-term viability of the company and by the time the damage is seen in the company profits the CEO is elsewhere continuing on solid path of "success". Pump and dump schemes are another related story (where the company holders have the incentives as well).
Have extra employees in organization and want to do some lay-offs to increase profits? You are likely to keep employees who are best at securing their positions with schemes such as refusing to share relevant information to keep yourself irreplaceable rather than those that are actually valuable to the company. Just imagine what your organization looks like after couple of rounds of these (unfortunately, I've witnessed some horrors like this - the most incompentent "developer" I've seen came from organization that did this, besides lacking relevant coding skills was also very unhelpful to collaborate with neighbor organization that our success was bound with. But he surely made sure it looked like it was the other ones fault.).
I'd say in general the problem is neglecting abuse schemes of incentives and quite often underestimation of intelligence is involved as well. Arrogance to say. Think about mushroom management of R&D organization. No way that employees (with higher average IQ than management) will be able to predict how management is trying to piss on them and no way they will find a strategic behaviour scheme to defend themselves from that which might be not that productive for the whole company...
I'd probably could think of couple of other examples as well but let's talk about law enforcement instead! Arrest quotas, anyone?