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I think that it is a failure - in many cases.
The employee is in charge of initial selection and normally has a probationary period (in many roles). Then they have the chance to use carrots and sticks to a limited extent as well as training.
There's always going to be some better hires and some worse ones - however to fire somebody does seem extreme to me. At least in a larger organization where there should be a range of roles suitable to the non-spectacular performers.
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