Prediction Error
Basically, the servers distribute information about all players and their actions to all connected players of a match. But it takes a while for the data to reach each player, so in the meantime, the client machines "predict" what each of those other players is going to do. if [enemy] is running in a straight line, it's very likely that they will keep running in a straight line, so your machine can animate [enemy] running even if it doesn't know where [enemy] is.
However, if the server has difficulty providing enough updates at high enough speed, your machine will be "starved" of information and realize it is very likely going to draw enemies in wrong positions. For instance, if the server cannot push packets every 50 ms for whatever reason, but only every 150 ms, that's a lot of time during which enemies are routinely going to change direction or do something unexpected. This makes it harder to hit enemies, because you are firing a...