Well, I'm a fan of open allocation. People aren't beholden to one manager. They work for the company. Two cases of firing that I see: 1. Objectively unethical

Well, I'm a fan of open allocation. People aren't beholden to one manager. They work for the company. Two cases of firing that I see: 1. Objectively unethical or toxic. Leakers, people who arrogate power in power vacuums, people who insult colleagues, people who break the law. Fire them. Don't wait a day. This is less than 1%. 2. People who can't fit anywhere in the organization. You need to get rid of them, but you have time. They might be a solid "5" or "6", but they'll never be a "8". There's just no fit. Give them a generous severance and a good reference. Let them use the office and represent themselves as employed during the search. Treat them as alumni and leave them feeling good about the company. 3. People who are not doing great where they are. Let them find a better fit (open allocation). If they don't have the initiative for that-- not everyone does-- see #2. That's the right way to fire people. It's a serious and important function and it shouldn't be used as punishment. You fire because you have no other choice. Then firing isn't about power. It's a necessary and unpleasant duty that keeps the company from falling to pieces.