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The Psychology of Power Abuse

Learn why power abuse happens in the workplace, how it affects employees and what organizations can do to prevent it.

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Written by:
Sean Peek, Senior Analyst
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Editor verified:
Gretchen Grunburg,Senior Editor
Last Updated Jun 15, 2026
Business.com earns commissions from some listed providers. Editorial Guidelines.
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More than two-thirds of employees who don’t feel protected from workplace harassment cite fear of retaliation as the reason, according to Traliant’s 2026 State of Workplace Harassment Report. That statistic highlights one of the most troubling realities of workplace power abuse: Employees often know something is wrong but don’t feel safe speaking up.

Power abuse occurs when people use their authority to intimidate, control or silence others. It can come from managers, executives or anyone with influence over another person’s job, opportunities or reputation. Left unchecked, it can damage trust, hurt morale and create a culture where employees are reluctant to raise concerns. We spoke with workplace psychologists and human resources experts about why power abuse happens, the psychology behind it and what organizations can do to 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, a renowned corporate well-being consultant and speaker.

From a legal and HR perspective, abuse of power is the improper use of a position of influence or authority against another person. It can affect employment decisions such as work assignments, performance evaluations, promotions or contract renewals. In some cases, it can also contribute to a hostile work environment through intimidation, threats, coercion or other forms of misconduct.

Power abuse isn’t always obvious. It can involve public humiliation, excessive micromanagement, retaliation against employees who speak up or using authority to pressure workers into accepting unreasonable demands. Because the people involved often control key aspects of an employee’s job, these behaviors can be difficult to challenge without support from leadership, HR or colleagues.

Examples of power abuse in the workplace

Illustration showing examples of workplace power abuse, including favoritism, retaliation and micromanagement.

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 2025, retaliation was the most common EEOC allegation, appearing in 54,350 of the 88,201 total charges filed, according to EEOC data. Federal law prohibits retaliation because it discourages employees from reporting problems and undermines workplace accountability.
  • Micromanagement: Excessive control over employees’ work processes, constant monitoring and refusal to delegate tasks appropriately can signal abuse of power. In today’s hybrid and remote environments, this may include deploying invasive “bossware” or digital surveillance tools that track keystrokes, screenshots or online 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, many hesitate to come forward due to fear of retaliation, job loss or being blamed for the situation. 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 fact, according to Traliant’s 2026 State of Workplace Harassment Report (cited above), one-third of employees said they would report harassment only if they could do so anonymously. In some cases, colleagues distance themselves from someone who raises concerns, creating a form of social exclusion that can make speaking up feel risky.
  • 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 dehumanized, marginalized or unable to challenge misconduct.
  • 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

Illustration showing the consequences of workplace power abuse, including lower morale, reduced productivity, turnover, health issues and legal risk.

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. And low engagement can be costly for employers. Gallup’s 2026 State of the Global Workplace report found that only 20 percent of employees worldwide report being engaged at work, a figure that translates to roughly $10 trillion in lost productivity globally each year.

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 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

Illustration showing ways to prevent workplace power abuse, including leadership training, safe reporting channels and HR accountability.

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.

1. 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.

2. 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.

It’s also worth noting that federal protections for whistleblowers vary by industry and the type of misconduct being reported. The Occupational Safety and Health Administration oversees more than 20 whistleblower protection statutes covering employees who report violations related to workplace safety, securities fraud, environmental hazards and more. Familiarizing yourself with the protections that apply to your industry can help you build a reporting framework that employees will actually trust and use.

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.

3. Make sure the right HR policies and accountability structures are in place.

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.

4. 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 both employees and HR teams a clear, structured path forward — rather than leaving anyone to navigate misconduct on their own without guidance.

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

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.