Leadership styles running a business

I would use democratic leadership and when I talk to him the first thing I would ask him is why he is not working to his fullest potential. Then I would let him decide if he wants to stay in the business. After this I would let the employees decide what will happen to this guy. If they want to keep him then I would let him stay. If not then I would give him sometime to pack his things. Give him a letter that symbolizes his leaving.