As a manager, what is the appropriate plan of action when dealing with a problem with an employee?

• employee performance management
• film industry issues
• tax write offs

To avoid a lawsuit for wrongful termination... In order to reference the problem(s) later on if the employee is fired or just to bring up during a review, what would you do? I think it's: meet with employee and explain misconduct, write down to put on file, etc... Is that correct and is there anything I'm missing? I'm in a business program and I'm just trying to learn.

As a manager, what is the appropriate plan of action when dealing with a problem with an employee?