A growing body of research suggests that having just a few nasty, lazy or incompetent characters around can ruin the performance of a team.
People are NOT psychologically damaged, either is your manager or you. The behaviors you are seeing come from a seriously flawed Organizational & Management System. Determine how your team and/or you can improve what you can and make the system function. OR maybe they are really f-ed up in the head!?
Can you OR should you try to change an asshole employees behavior?