Terminating an employee is a painful process for both employees and managers. I have found that most managers struggle through the entire process, whatever the reason for the termination. If an employee is fired, managers often feel guilty and have feelings of failure. Layoffs may be even worse because the termination may be through no fault of the employee.

Managers must consider three areas when terminating an employee: the employee, the coworkers and the company or organization. While it's impossible to keep these in total balance, considering these perspectives will help the manager make and implement a prudent termination decision.

The following actions can help in keeping these perspectives in mind.

Help the employee correct problem performance. It is your responsibility to establish and communicate measurable job expectations and standards, and the employee's responsibility to meet them.

However, employees often perform incorrectly or inadequately for a long time before a manager steps in and tries to help correct the performance or behavior. If the employee is then terminated, he or she often doesn't understand why. This can lead to defensive behavior and might even result in a lawsuit.

To avoid this, provide ongoing coaching with positive and corrective feedback. Don't assume that employees know what to do. When you intervene for the first time, make it a positive and try to help the employee perform successfully.

Document performance and all discussions with employees. Ensure that performance appraisal ratings and percentage increases are consistent with performance level.

Retain the employee's dignity. Don't make an employee feel verbally or personally attacked. Describe performance and behavior issues without namecalling or discriminatory words.

There is no need to publicly humiliate a just-terminated employee: Unless there is a safety risk, it's usually not necessary to hire armed guards to escort people off the premises.

Minimize disruptions of the normal functioning workplace. Make sure you don't become so focused on a single "problem" employee that your attention is diverted from the functional working employees. Pay attention to how one employee's lack of performance affects the rest of your staff. Consider that your other employees are observing how their team member is treated. High performing employees don't want low performing team members, but they do want all employees to be treated with respect.

Don't be surprised if there is a negative reaction to the employee who is leaving. After all, the remaining employees have to pick up the slack. In a layoff situation, the perception of the survivors can be: "Great, I have a job and now have to spend 50 to 60 hours a week to do the work of the laid-off coworkers." Ensure and implement a plan to evenly redistribute or eliminate the work.

Know the legal and procedural issues to protect the manager and the company. Many states are at-will employment, which means an employer can terminate an employee at any time, for any reason, or for no reason at all. An employee may do the same.

While this may look like there is no legal risk in terminating an employee, if a terminated employee thinks that the employer broke a federal or state law, or acted in a discriminatory or retaliatory manner, he or she may file legal action claiming wrongful discharge.

To protect yourself, first embrace the philosophy that: "Our company wants to ensure all our employees are treated fairly."

Involve the human resources department from the beginning of the termination process and follow the advice of an employment attorney. This will offer you comfort and support when following the company's disciplinary guidelines and termination process.

During a layoff, consistency is imperative. When should the communication take place? What outplacement or career coaching services will be provided? How should the severance policy be designed?

Tie up loose ends. Schedule a final meeting for all terminated employees. Bring all the final termination and benefit paperwork, including the employee's final paycheck. Address how good-byes, staff communication, company equipment and personal belongings will be handled. If all the appropriate legwork has been done, the meeting should be very short.

A manager will never feel totally comfortable in terminating an employee: Managers are human and have feelings. However, knowing how to do it right can reduce the pain during the process.

Sue Romero is a human resources consultant and facilitator specializing in employee relations, manager coaching, management and team training. She has over 20 years experience coaching managers on enhancing their effectiveness. Her Web site is www.romeroconsulting.com.