The document discusses different approaches to assigning letter grades to students. One approach is grading on a curve, where a certain percentage of students receive each letter grade based on their performance relative to others in the class. However, this can encourage competition over cooperation and standards may vary between classes. An alternative is using predefined levels of performance for each grade, such as assigning percentages or descriptive adjectives to each grade, regardless of overall class performance. For this to be effective, the predefined standards must be clearly communicated.