Understand the importance of ethics and that a Code of Ethics applies to everyone within the organization. The behaviors of supervisors, the goals they seek, and what actions they take will affect them, their employees and the organization. Unethical behaviors within an organization will have serious effects on an organization. Conduct effective appraisals and understand the importance of handling poor performance and rewarding performance. Employee’s performance affects production which in turn affects an organizations ability to compete in a competitive economy.