My last high school was almost that bad. The students evaluate the teachers for the teacher's bonus, and the same for the head teachers' bonus. The students are asked 10 questions along the lines of, "Is the teacher's lesson properly prepared for class?" As if they would know. The dean refuses to enforce any rules and if the teacher does, basic stuff like not coming in late every day and making noise when entering late, the students complain and give him low ratings.
It's simply a way of trying to put all the burden of the school's problems, which is 99% the incompetent managers, on the teacher. All they can ever say is that they can't refuse any paying students and they can't discipline any paying students because they won't come back.
Actually the dean in the video is much more responsive than the one I had or his subordinates. I finished my contract and moved on.