Since you are from HR, the most important factor for you is to maintain discipline and the organization's culture. Therefore, before you counsel, discuss the matter with your seniors, especially the MD, and try to find out his or her views. Inform the MD that with this kind of behavior, the employee in question is undermining the company's culture. People may come and go, but the culture of the company remains. Therefore, there cannot be a trade-off between high-level performance and bad behavior. If the MD wishes to treat this employee with kid gloves, so be it. It's better not to intervene.
However, if the MD agrees to counseling, you may refer to my previous response for guidance. The link is provided below:
https://www.citehr.com/459788-how-in...rformance.html
In the meantime, have you received a formal complaint about the employee's behavior from other employees? If yes, then inform the MD about this simmering discontent. Explain to the MD that while trying to retain this employee, we may lose a few others or demotivate them. Therefore, this will result in incurring either the cost of attrition or the cost of demotivation. While employee retention is of utmost importance, management cannot appease any employee for the sake of retention. If done, it will have dangerous repercussions.
For Kumaran Praveen: You have provided a list of the causes for employees behaving in a weird manner; however, I beg to differ with you. If the employee is from an IT company and has personal or professional issues, he can approach and try to resolve them on his own. Like a factory worker, he needs to rationalize. Do you know that
http://wikipedia.org rationalization is a type of defense mechanism?
What the employee is exhibiting is nothing but high-handedness or arrogance stemming from a superiority complex or an idea that he is indispensable. This rebelliousness must be addressed promptly; otherwise, other high-performing employees may follow suit.
Thanks,
Dinesh Divekar