Heh, I had a few colleagues like that in my first job. Not so many anymore, luckily. Seems pretty straightforward how to deal with them I would think, you call them in for a private talk and explain to them what your problem is with them and what they could about it. If he takes it well, you've got a productive and constructive employee on your hands and if he takes it badly then, well, fuck him. I have no patience for people who cannot deal with constructive criticism (you'd be surprised how many people are like that. From my general experience women in particular tend to take professional criticism way too personal).
But I suppose such a scenario/way of working depends a lot on personal charisma. And while I believe that you can work to get the rough edges off some parts of your demeanor, if you don't have it (as a leader, people manager, whatever) you just don't have it. So I'm not a big believer in classes on how to manage your personnel properly.
Personally, I have rarely seen something as pathetic as some of my bosses who were just not very charismatic/didn't have many people skills suddenly say things that were a) clearly taken straight from a management training and b) completely out of character. Because they didn't "feel" it, they just parroted the classes. So ironically, the people who need it can't get it, and those who don't need it probably do.
P.S. That is not to say they were necessarily bad managers. They just sucked at dealing with people on a level beyond "do this and then do that"