Getting rid of a bad apple
Don't shy away from the clash. Think about the benefit of removing the problem, instead of its (mental) cost. Collect evidence of the persons' wrongdoings. Set the time and place separate from co-workers, and, especially, customers. Make no compromise, but help the person in facing her/his face. Keep focus on the behavior. Communicate threafter to the remaining team, take the opportunity reinstating the values of the workplace and repeat your expectations. Involve the team, or at least some key people, in the replacement process. Be preemptive, make sure it is unlikely happening again.