When Faced with a Divisive Employee

Rick Boxx, President and Founder of Integrity Resource Center, describes a situation a CEO he knows had with a disruptive, divisive employee:
"A longtime employee of his had been an adequate performer in the organization for many years. As the business grew, and more interaction between him and others became necessary, however, this employee's shortcomings became obvious. He would deride other employees, stir up dissention, and even make inapprpriate remarks to--and about the business owner."
Naturally, no one wants to work with such a difficult person. Frustrations rise, morale goes down, and colleagues, customers and vendors get upset. So what do you do with such a problem person--especially if he or she is a longtime employee?
You can't ignore the person. You're going to have to intervene as quickly as possible and help get this person on the right track. If that is impossible, termination may be the only choice. To not take action is unfair to this emplyee, the employees with whom he or she works, and to the organization itself.