Advising a person to his face

What is the ruling on speaking directly to a person and telling him of his faults whilst he is listening? Is this permissible?

Praise be to Allah, and blessings and peace be upon the Messenger of Allah:

This is permissible if it is done in order to advice the person and rebuke him so that he will be deterred from committing sin. It should be done in a nice and polite manner so that the advice will be accepted. But if it is done in a mean-spirited way, intending to shame him, insult him and expose him to people, etc., then this is not permitted.