How can Handle Employees During Performance evaluation?

Laying off your poor performers is the right practice?
In this way can you set a good impact on your business and yourself as a leader on your employees?

Laying off for poor performance is not a right practice. Initial screening, then preliminary & final interviews, group discussions (if applicable) etc are various processes involved in selecting a right talent for an organization. However, a newly hired candidate, after putting his services for a few weeks or 2-3 months, can perform well or vice-versa. This is because of "Expectations v/s Realities"
of a new candidate in that organization.
There are various factors/driving forces in any organization which can either motivate or demotivate an employee (particularly a newly hired employee) which will ultimately lead to good job performance/poor job performance.
Kindly examine these factors and openly discuss and counsel the employee concerned.
Also introduce and implement a Performance Improvement Plan.

Laying off for poor performance is illegal and the establishment may face legal consequences. As per the definition the 'lay-off ' when an establishment is failure, refusal or inability of an employer on account of the shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery or natural calamity or for any other but not on account of "Poor Performance".
The removal of employee on ground of poor performance is a vague idea. Are you sure of that the new employee would deliver as per your expectation whom you like to induct in place of a poor performer? The employee is being removed on ground of poor performance, was once selected by you for your establishment. It is always wiser decision to introspect in to the performance of employee, why he failed? What are the possible causes remained for failure and what number of causes remained from the employer side. Unless until you do the thorough study of the situation, you will go marry go round. It would be better to spot the causes and take remedial actions for the employees having poor performance and build them for better performance.