Think of a rule at work, any rule. It can be about when to arrive, what to wear, who needs to approve the expenses, etc.
Many of these rules were created after someone exercised poor judgment (or worse). So the solution was to remove judgment-making and impose a rule.
Do this repeatedly and soon you have a workforce that rarely has an opportunity to exercise good judgment. As a result, they get bad at it. It’s been said that when you build dummy-proof systems, only dummies will work for you.