This document discusses problems and ethics in performance appraisal. It defines performance appraisal as evaluating employee performance, sharing that information with employees, and finding ways to improve. It outlines the performance appraisal process and then discusses common problems like halo effects and variable standards. It also discusses ethics involved, including using rewards/punishments positively, providing reliable/valid information, maintaining confidentiality, and standardizing the process. It concludes with advantages like performance feedback and motivation, and disadvantages like potential negativity and waste of time.