Problem employees require you to follow some general steps when handling any difficult situation with them. You must deal with a business employee who's either unintentionally or willfully acting against your business's standards.
Notify your employee that he or she isn't meeting your business's standards.
You should give this warning verbally, in a one-on-one meeting. Make a memo to yourself about what both the employee and you said.
Issue a second warning.
If the employee hasn't improved his or her behavior, have another one-on-one meeting. This time, deliver a memo that outlines areas that need improvement and explains how the employee’s actions are negatively affecting business.
Issue a final warning.
If the individual’s conduct doesn’t improve, ask your human resources or legal representative to guide you. In some instances, a final warning is appropriate. In other cases, termination without a final warning may be the right step.
Terminate the employee.
At this point, you've given him or her plenty of chances to meet your expectations. Termination becomes the only option.
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Source:http://www.dummies.com/how-to/content/how-to-deal-with-problem-employees.html
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