Is it permissible to report an incompetent or morally corrupt employee to the management official?

He should be advised and guided towards good, and encouraged to fulfill the trust. If he does not respond, then it is obligatory to report him to the competent authority, based on the Almighty's saying: (And cooperate in righteousness and piety), and the Prophet's (peace be upon him) saying: (Religion is sincerity/advice).