That's another mistranslation by the KJV.
"For himself" is wrong. It should be "to its proper end."
The NIV has a better rendition: 4 The Lord works out everything to its proper end—even the wicked for a day of disaster.
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The original word used was lam·ma·‘ă·nê·hū; root word "maaneh," which means "answer or response." That's Strong's #4617: http://biblehub.com/hebrew/4617.htm
This what the verse means: The Lord works out everything for their own proper end --- yes, the wicked will end up in hell.
God made all of us to end up with God's proper "answer or response" (maaneh). Those who choose good, the "answer or response" will be heaven; those who choose evil, the "answer or response" will be hell.
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Reading the KJV's rendition, it looks like God created wicked people for hell; that they are predestined to go to hell, and they will never be able to do anything to change that.
This wrong rendition of Prov. 16:4 is used by Calvinists to support their false doctrine of predestination. Calvinist beliefs can be found in some Protestant denominations.
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http://www.examiningcalvinism.com/files/OT/Prov16_4.html
http://www.covenantoflove.net/hell/proverbs-164-does-god-actually-make-the-wicked-specifically-for-destruction/
http://www.greatbiblestudy.com/wicked_punishment_proverbs.php
You are making a wrong judgement on Calvinism.
Mat 1:21
New International Version
She will give birth to a son, and you are to give him the name Jesus, because he will save his people from their sins."
New Living Translation
And she will have a son, and you are to name him Jesus, for he will save his people from their sins."
English Standard Version
She will bear a son, and you shall call his name Jesus, for he will save his people from their sins.”
New American Standard Bible
"She will bear a Son; and you shall call His name Jesus, for He will save His people from their sins."
I will ask you then why Jesus will save
His people not
All People?
and why God will show mercy on whom He have mercy.
Romans 9:14
14What then shall we say? Is God unjust? Not at all! 15For he says to Moses,
“I will have mercy on whom I have mercy,
and I will have compassion on whom I have compassion.”
How come that the Saviour only save His people?
Additional:
4 The Lord works out everything to its proper end—even the wicked for a day of disaster.
in the translation you have shown, there is a proper end for everything.