Too often, I hear from managers who are at their wits end with a problem employee. Unfortunately they reach out for help at the point of no return. It is important to set expectations early, often and clearly. Meet with your employee on the first day of employment to outline what is important to you in attitude and behaviour.
Continue to meet regularly to calibrate with the employee regarding your expectations. If despite these efforts, your employee misses the mark, at this point, you should be weighing the cost benefit of keeping the employee and investing more time and energy into aligning his behaviour vs. simply cutting your losses and letting the employee go.