Termination of sales head

Today a very important guy in our business unit was made redundant.
One thing I have learned is no matter how important a person is to your organization, he or she should show trust and respect to his or her manager. A psychologist says people work only either out of curiosity or fear. People making their living just purely out of curiosity on a daily life must be happy people. People sometimes need fear or at least concern to do things. From that perspective, assigning authority or power to people is mandatory to keep order in a organization. I believe our leader made the right decision in the end though it could cost more.