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The Psychology of Power Abuse

Take a closer look at the psychology behind power abuse in the workplace, as well as its effects and how to stop it.

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Written by: Sean Peek, Senior AnalystUpdated Feb 02, 2026
Gretchen Grunburg,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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More than 52.2 million workers have been bullied in the workplace, and another 22.6 million have witnessed it, according to the 2024 WBI U.S. Workplace Bullying Survey. While bullying can take many forms, power abuse is a distinct pattern in which people use their formal authority to intimidate, control or silence others.

Even as companies invest heavily in diversity, equity and inclusion (DEI) initiatives, power abuse remains a persistent issue that erodes trust, damages morale and stifles innovation. We spoke with workplace psychologists and human resources experts about why power abuse still happens, the psychology behind it and how organizations can stop it.

What is power abuse? 

Power abuse is the misuse of authority to control, intimidate or harm others in the workplace. It occurs when someone with formal power, such as a manager, C-suite executive or supervisor, uses that position to manipulate employees, undermine their autonomy or create a climate of fear.

“Power abuse in the workplace refers to the exploitation of authority or positional power to exert undue influence, control or manipulation over others, often at the expense of psychological safety and trust,” explained Dr. Kennette Thigpen Harris, chief clinical officer at Workplace Options.

From a legal and HR perspective, abuse of power is defined as “the improper use of a position of influence, power or authority against another person,” which can affect someone’s career or employment conditions, including assignments, contract renewals, performance evaluations or promotions. It can also create a hostile or offensive work environment through intimidation, threats, blackmail or coercion.

Because abusers often rely on their organizational status to enforce compliance, these behaviors can trap employees in a cycle of fear, especially when leadership or colleagues fail to intervene.

Examples of power abuse in the workplace

power abuse examples
Power abuse can manifest as public humiliation or aggression in meetings.

Power abuse can show up in many forms, from subtle manipulation to overt aggression.

“Power abuse happens when leaders exploit their authority to demean, control or marginalize employees,” said Tamanna Ramesh, founder of Spark Careers. “I’ve seen it manifest as micromanagement, favoritism or withholding critical resources, often leaving employees feeling powerless and undervalued.”

Below are some common examples of power abuse in the workplace.

  • Hiring favoritism: Leaders who show preferential treatment in hiring, promotions or assignments based on personal relationships rather than merit create unfair advantages and undermine team morale. This form of workplace nepotism can exclude qualified candidates and breed resentment among employees who are overlooked despite their competence.
  • Harassment: Workplace harassment includes repeated unwanted conduct that creates an intimidating, hostile or offensive work environment. According to HR Acuity’s 2025 research, there were 14.7 cases of discrimination and harassment reported per 1,000 employees in 2024, the highest level in nine years. Harassment can include verbal abuse, sexual harassment, workplace bullying or intimidation tactics.
  • Retaliation: When employees report misconduct or raise legitimate concerns, some leaders respond with punitive actions such as demotions, negative performance reviews, reduced responsibilities or termination. In fiscal year 2024, retaliation was the most common EEOC allegation, appearing in 47.8 percent of all charges filed, according to the EEOC’s charge statistics tables. Federal law prohibits retaliation because it shuts down accountability and makes employees less likely to speak up.
  • Micromanagement: Excessive control over employees’ work processes, constant monitoring and refusal to delegate tasks appropriately can signal abuse of power. In the modern era, this may include the use of invasive “bossware” or digital surveillance tools to track employee activity. This behavior undermines autonomy, stifles creativity and communicates a lack of trust that damages manager-employee relationships.
  • Publicly embarrassing others: A leader who uses their position to embarrass others is abusing their power. This may include sharing humiliating stories, mocking mistakes or making negative personal remarks.
  • Aggressive behavior: Whether framed as a joke or brushed off as a bad day, aggressive behavior can be a form of power abuse. Examples include shouting at employees, shifting blame, threatening job loss or using fear to control behavior.
  • Seeking revenge: Power abusers sometimes seek revenge in subtle ways, like interfering with someone’s work or setting them up to fail, and sometimes in more obvious ways, such as spreading rumors or targeting them in meetings.
  • Manipulation: Abusive leaders often exploit peer pressure or organizational politics to coerce others’ support. They may twist situations, spread misinformation or pressure employees to act against their own interests or the company’s values.
FYIDid you know
More than half of employees (53.7 percent) say they have quit a job because of a toxic workplace, often driven by power abuse or poor leadership, according to iHire's 2025 Toxic Workplace Trends Report.

Why abuse of power happens (and the psychology behind it)

Understanding the psychology behind an abuser’s actions can help explain — though never excuse — why power abuse occurs. Even in professional settings, abuse is often shaped by a mix of personal traits, past experiences and organizational dynamics. Here’s an overview of some reasons abuse of power occurs. 

Organizational culture and lack of accountability

Harris explained that power abuse can persist because of poor organizational culture, rigid hierarchies and societal norms. “Traditional power structures often prioritize authority and results over collaboration and employee well-being, which can normalize or overlook abusive behavior,” Harris explained.

When human resources teams or managers lack the training, tools or authority to intervene, toxic behavior can take root. Without clear people management standards, harmful actions may go unchecked until they cause real damage.

Harris stressed that inclusive policies are needed. “The absence of inclusive policies — such as equitable performance reviews or transparent promotion processes — can unintentionally reinforce power imbalances,” she said. “Organizations that invest in inclusive leadership development create a culture where power abuse is less likely to take hold.”

Lack of confidence or knowledge to report

Many employees don’t immediately recognize power abuse; they may rationalize it as just a demanding leadership style or the typical pressures of the industry. They may assume their experiences are normal or not worth reporting, or they may not know where to turn for help. Depending on who the perpetrator is, employees may feel unsure about reporting the problem or doubt their ability to prove it.

Witnesses can be hesitant, too. Even when something feels off, they may second-guess what they’re seeing or assume it’s not their place to step in, allowing the behavior to continue.

Fear of consequences

Even when employees recognize power abuse, they may hesitate to come forward because of the potential consequences, such as losing their job, being blamed for the situation or facing legal trouble. They may also be concerned about the following:

  • Being ostracized: If they can’t report the issue anonymously, they may fear being ostracized at work and decide it’s safer to stay quiet. In some cases, colleagues distance themselves from someone who raises concerns, creating a subtle form of social exclusion sometimes called a “group shun.” That isolation can make speaking up feel risky, especially when co-workers are trying to avoid drawing attention to themselves.
  • Not having the resources for a fight: Financial pressure plays a role as well. Leaders and organizations often have more resources to fight complaints, which can make reporting feel risky or out of reach for employees.
  • Nothing happening: Victims may also worry that nothing will happen if they speak up. If concerns are dismissed or ignored, it can embolden the abuser and make the situation worse.

Ego and psychological drivers

Harris explained that power abuse often has deep psychological roots. “Leaders who lack emotional intelligence or self-awareness may misuse power to compensate for perceived vulnerabilities or to maintain control,” she said. Consider the following: 

  • Research published in PMC found that organizational hierarchies can play a critical role in power abuse. Power structures may attract narcissistic individuals and reinforce power differences, creating conditions where people with less power feel powerless, dehumanized or worthless.
  • A study published in Nature further highlights the role of self-perception in abusive dynamics. It found that narcissistic employees tend to develop an inflated sense of self and their abilities. These individuals may overestimate their capabilities and express both constructive and destructive ideas to reinforce their sense of uniqueness, sometimes at the expense of others.

Although these drivers can seem personal, the consequences often extend beyond the individual. “Unchecked individual power can impede or damage organizational culture by eroding empathy,” Harris cautioned.

Did You Know?Did you know
Classic psychology research, including the infamous Stanford Prison Experiment, showed how quickly people can adopt abusive roles when placed in positions of authority, although modern research shows culture and leadership matter just as much.

The consequences of power abuse at work

power abuse consequences
The ripple effects of power abuse can damage an entire organization.

Harris cautioned that in a work environment, power abuse can take a serious toll on both employees and organizations. “For employees at every level, power abuse leads to stress, anxiety and reduced self-worth, often resulting in disengagement and turnover,” she said. “At the team level, power abuse fosters distrust, stifles innovation and weakens collaboration.”

Consider some of the potential consequences of power abuse:

Decreased employee morale and productivity

Employees who experience power abuse are less likely to feel engaged or productive when they’re constantly worried about how they’ll be treated. That stress can drain mental energy and motivation, making it harder to focus on work or perform at their best. Over time, it can also lead to more workplace absenteeism and a growing sense of isolation or lack of support. This lack of engagement can be costly. Gallup’s State of the Global Workplace 2025 report found that only 21 percent of employees are engaged, a drop that costs the global economy an estimated $438 billion in lost productivity. 

The impact rarely stops with one person. Teams and departments can feel the ripple effects if mistreatment changes group dynamics, disrupts projects or forces colleagues to pick up extra work when someone’s performance suffers.

“For organizations, power abuse impedes workplace excellence and disrupts business functions, from lower levels of productivity to challenges with retention,” Harris said. “An abusive teammate, manager or executive can do outsized harm to a team or organization.”

Reduced mental and physical well-being

Power abuse can create a hostile work environment where employees feel uncomfortable speaking up or sharing concerns. Over time, that silence can fuel productivity-killing stress and take a toll on both mental and physical health.

Chronic stress from a toxic workplace is a serious health risk. Team members may experience anxiety, employee burnout, sleep problems or other health issues, which can also increase healthcare costs for employers. 

“I’ve coached countless professionals who faced anxiety, burnout and even career derailment due to toxic leadership,” Ramesh said. “From an organizational perspective, these behaviors drive attrition and harm productivity, costing billions in lost talent and morale annually.”

Turnover and retention challenges

Toxic culture is a major driver of the “revolving door” in many organizations. Low morale and poor well-being tied to power abuse can push employees to start looking elsewhere. When the abuser stays in power and nothing changes, some people decide it’s better to leave than stay in a situation that feels unsafe or unsupported.

Employee turnover also gets expensive fast. According to the Work Institute’s 2025 Retention Report, replacing an employee costs about 33 percent of their salary. Beyond losing institutional knowledge and high performers, companies take on the costs of constant offboarding and onboarding. When a toxic environment creates a steady cycle of exits and new hires, it can slow growth and eat into profitability.

Legal risk and company reputation

In some cases, an employee who experiences power abuse may decide to take legal action. Whether a claim succeeds depends on the facts and how the employer handled the situation. Companies can face a business lawsuit if they knew or should have known about the abuse and failed to address it, especially when the behavior involves harassment or discrimination tied to a protected characteristic, such as race, disability, sex or sexual orientation.

Legal disputes are only part of the risk. Allegations of power abuse can also damage your brand reputation, affecting new employee recruitment and eroding trust with customers, investors and employees.

TipBottom line
Some of the best HR software providers offer access to human resources experts who can help businesses navigate legal concerns and workplace issues, including power abuse. See our ADP review and review of Gusto for two examples.

How to prevent abuse of power in the workplace

preventing power abuse
Creating a safe culture requires proactive leadership and clear policies.

Stopping power abuse requires education and real support systems at the organizational level. Simply having an antibullying policy or a code of ethics or conduct isn’t enough. In many companies, those policies exist on paper but aren’t enforced or taken seriously.

Here are a few ways to prevent abuse of power in your business.

Train and develop leaders. 

Harris recommends teaching leaders and managers how to foster equity and business transparency, with a focus on soft skills like active listening, empathy and cultural competence. “Inclusive leaders are better equipped to recognize and address power dynamics that may harm others,” Harris explained.

Leaders should set the tone by modeling accountability and respect, but they shouldn’t be the only ones trained. Organizations also need to encourage employees at every level to recognize harmful behaviors and feel safe speaking up. Investing in employee training can help team members call out bad behavior, refuse to participate in it and clearly describe what’s happening.

Implement whistleblower protections and reporting mechanisms.

Establish clear reporting systems so employees can raise concerns about workplace conflicts or abuse with human resources or senior leadership. Multiple channels — including anonymous employee feedback options — can make it easier for employees to speak up without fear.

“A company can thwart power abuse by implementing mechanisms for anonymous feedback and ensure timely responses to reports of abuse,” Harris said.

The response should match the severity of the situation. Some issues may require mediation or coaching, while others call for formal investigations and disciplinary action.

When early interventions fail to stop the behavior, organizations should escalate consequences in line with their disciplinary action policy and applicable employment and anti-discrimination laws, up to and including employee termination.

Ensure HR policies and accountability structures.

HR teams should regularly review whether their harassment and conduct policies actually work in practice. That can include checking how well employees understand the policies, how easy it is to report concerns and whether investigations are handled consistently and fairly. Routine surveys and feedback tools can also help HR spot “hot spots” of dissatisfaction before they turn into larger issues or legal claims.

FYIDid you know
If you don't have an internal HR department, consider outsourcing HR functions to a respected platform or consultant that offers anonymous reporting tools and HR compliance guidance.

Practice the SAFE framework.

When Ramesh’s clients ask how to handle power abuse, she recommends what she calls the SAFE framework:

  • Spot the issue.
  • Assemble evidence.
  • Find support.
  • Escalate or exit.

The framework can apply to both employees and organizations. For individuals, it means recognizing abusive behavior, documenting incidents, reporting concerns and, if nothing changes, choosing to leave an unsafe environment. For employers, it means identifying misconduct, documenting what’s happening, supporting affected employees and taking action — up to and including discipline or termination — if the behavior doesn’t stop.

This dual approach gives employees and HR teams a clear path forward, rather than leaving them guessing how to respond.

Healthy Leadership vs. abuse of power

Here’s a quick way to spot the difference between healthy leadership and abuse of power. While every organization looks different, these behaviors can help you recognize when leadership practices cross the line into harmful territory.

Aspect

Healthy leadership

Abuse of power

Delegation and trust

Delegates, trusts team

Micromanages, controls

Feedback style

Gives constructive feedback

Criticizes, humiliates

Accountability

Accountable

Blames others

Decision-making

Transparent, collaborative

Arbitrary, biased

Communication

Welcomes feedback

Punishes dissent

Resource allocation

Distributes resources equitably

Shows favoritism, withholds resources

Work-life balance

Respects boundaries

Ignores boundaries, overworks staff

Conflict resolution

Fair conflict resolution

Retaliates against complainants

Impact

Positive culture, stronger retention

Low morale, high turnover, legal risk

FAQs on abuse of power

In the workplace, abuse of power generally refers to the misuse of authority to influence hiring, promotions, evaluations or working conditions, or to intimidate or coerce employees. When power abuse involves discrimination or harassment based on protected characteristics such as race, sex or disability, it can violate federal and state employment laws enforced by the Equal Employment Opportunity Commission (EEOC) and other agencies.
Common examples include favoritism in hiring or promotions, harassment, retaliation against whistleblowers, excessive micromanagement, public humiliation, aggressive behavior such as shouting or threats, vengeful actions and manipulation. In each case, the leader prioritizes personal control or interests over fairness and employee well-being.
Employees should start by documenting what happened, including dates, details and anyone who witnessed it. They can report concerns through HR, an ethics hotline or an anonymous reporting tool if one is available. For external complaints, employees can contact the EEOC for discrimination-related issues or the Department of Labor for other workplace violations. Some whistleblower laws, including Sarbanes-Oxley and Dodd-Frank, also protect employees from retaliation.
HR teams develop policies, train managers and employees, establish confidential reporting channels and investigate complaints. They also gather employee feedback, conduct audits and enforce disciplinary measures. When HR functions well, it helps build a culture of accountability and respect while keeping the company compliant with employment laws.

Skye Schooley and Petrina Coventry contributed to this article. Source interviews were conducted for a previous version of this article.

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Written by: Sean Peek, Senior Analyst
Sean Peek co-founded and self-funded a small business that's grown to include more than a dozen dedicated team members. Over the years, he's become adept at navigating the intricacies of bootstrapping a new business, overseeing day-to-day operations, utilizing process automation to increase efficiencies and cut costs, and leading a small workforce. This journey has afforded him a profound understanding of the B2B landscape and the critical challenges business owners face as they start and grow their enterprises today. At business.com, Peek covers technology solutions like document management, POS systems and email marketing services, along with topics like management theories and company culture. In addition to running his own business, Peek shares his firsthand experiences and vast knowledge to support fellow entrepreneurs, offering guidance on everything from business software to marketing strategies to HR management. In fact, his expertise has been featured in Entrepreneur, Inc. and Forbes and with the U.S. Chamber of Commerce.
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