I only know of one guild on our server that does that, Tyranny. They're retards. I just couldn't imagine trying to tell someone "No, he gets the loot, you fucking suck at WoW."
Anyways everything is really civilized. No one cries, no one whines. In the end everyone just ends up saying "Grats" or whatever. We have MC on farm status, so everyone will get something sooner or later.