ginnyrose, Your entitled to how you wish to run your company, but I believe your employee was wise to quit.
You write: "We had a girl who did excellent work. But as time went on her output got less and less. She was doing well initially so I did not keep tabs on her until the end of the week it dawned on me what was happening."
What's this "... as time went by ..." She quit after one week.
I owned my own business, a very successful business. My employees were permitted to take personal calls, sometimes a spouse will call with important info, or they may call their spouse to make sure their paycheck was deposit so the mortgage payment does not does not bounce. They may be concerned about their sick child, or need to be notified by a doctors appointment, or one that was cancelled. As long as it is legit, I did not mind.
What I did mind was their overall productivity. To boost this, I let my workers know when they performed well, that I do depend on them, I gave them credit for a job well done, praise them in front of other workers, at the end of the year I give out bonuses beyond their agreed salary, for good performance. I encourage competition on performance among those whom I employed. I make them feel that the company's success is their success. They were happy and I made a lot of money during those years.
I once applied for a job as a Construction Project Manager. Apparently my interview went well as he tested my on my Construction knowledge and good sense. The owner offered to pay me $ 150,000 per year, the most I ever been offered. Then he gave me his version of "When you are on the clock, your time belongs to your employer. Get it?" speech. And he obstinately set down his very ridged rules. I turned down his offer. He tried to get me back, but I knew it would be very unpleasant for me to work for this man for any extended period of time.
So I write this to let you know there are other ways to run a company successfully without resorting to your "word for employees", your advice as to what Christians must accept when working for their employers or they are not good Christians. I've always been a 'Mercy triumphs over Judgement' type employer, and I've obtained excellent results.