I believe that this is a common and ineffective method, at least in the business world. Haven't we all seen a boss mess up and then blame someone and fire them?
Not the same thing at all. It is used extensively in the military as a proven team building method. I use it with my employees and it works almost as well as it did when my Drill Sergeants used it on us in Basic.
That said, I don't use it for my teams. Kids aren't ready for that kind of responsibility (I coach 12U and 7th grade).