My personal preference is document & fire, but I know that my company will go through counseling, remediation, more counseling, documentation, extra training, heart felt discusions, yet more counseling, more documentation... eventually you can fire someone but you have to walk on hot coals while juggling running chainsaws and singing Ethyl Merman tunes in order to do it. Most managers just suffer with the Erics or try to get them transferred into various backwaters in the organization. That's the biggest drawback to working with a large organization.