I tried the method of
$$\frac{z^2-1}{(z+1) (z+2)}=\frac{A}{(z+1)}+\frac{B}{ (z+2)}$$
but it didn't work. Why is this?
As both denominator and numerator have the same degree, first divide the polynomials:
$$\frac{z^2-1}{z^2+3z+2}=1-\frac{3z+2}{z^2+3z+1}$$
and now do partial fractions on the second summand above.
your fraction is improper so first $$z^2 - 1 = (z-1)(z+1)$$ then you have $$\frac{z^2-1}{(z+1)(z+2)}=\frac{z-1}{z+2}$$ and then at last $$\frac{z-1}{z+2}=1-\frac{3}{z+2}$$
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As both denominator and numerator have the same degree, first divide the polynomials:
$$\frac{z^2-1}{z^2+3z+2}=1-\frac{3z+2}{z^2+3z+1}$$
and now do partial fractions on the second summand above.