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Firing people can be unpleasant. But it has to be done occasionally. Keeping him is unfair as others have to work harder for his failure.
Yes, non / poor performers have to be fired.
But,if the process is transparent, others will not be demoralised.
Even in that case,it should not affect the career of of the fired person. let him live better also, where he fits.
We can reduce the negative feelings in firing a person by highlighting the win for all aspects of the incedent. The fired person will be better off in amore stable position which suits his/her skills, expertiese and performance capacity while continuing will only be the worset proposition.