The "find a reason to say no" can be very damaging as well if taken to the extreme. I've seen people that were entirely qualified for the position be rejected

The "find a reason to say no" can be very damaging as well if taken to the extreme. I've seen people that were entirely qualified for the position be rejected at the company I work for because they made some totally understandable mistake - I'm talking about people that took the time off to take a 5-hour on-site coding assignment, and made a mistake but would have had a passing (and possibly good) grade on an academic evaluation. And now we have 5 open positions and nobody hired for them.