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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 Oct 02, 2025
Shari Weiss,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 an additional 22.6 million have witnessed it, according to the 2024 WBI U.S. Workplace Bullying Survey. In the workplace, power abuse is a specific type of bullying that involves someone inappropriately using their position of authority against a subordinate employee.

Despite modern workplaces prioritizing inclusive and equitable company cultures, power abuse persists, fueling toxic work environments and damaging employee morale. Business.com spoke with workplace psychologists and human resources professionals about why power abuse still occurs, the psychology behind it, and how to stop it.

What is power abuse? (definition and meaning)

You may have experienced or witnessed power abuse in the workplace without knowing the name for it. Abuse of power in the workplace occurs when someone in a position of authority – such as a boss, executive or manager – misuses their influence to exert undue control, manipulation or harm over subordinate employees. The abuse usually stems from someone who holds power applying pressure and bullying their employees into difficult or stressful situations. 

“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,” Dr. Kennette Thigpen Harris, chief clinical officer at Workplace Options, told us.

From a legal perspective, abuse of power is defined as “the improper use of a position of influence, power or authority against another person,” which can improperly influence another person’s career or employment conditions, including appointment, assignment, contract renewal, performance evaluation or promotion. It can also create a hostile or offensive work environment through intimidation, threats, blackmail or coercion.

Abusive people gain and maintain power over their victim with controlling or coercive behavior and proceed to subject that person to psychological, physical, sexual, or financial abuse. Power abuse can go on for years, is often ignored, and may be encouraged by those surrounding the abuser. Not taking action to stop the abuse is a form of abuse itself.

Examples of power abuse in the workplace

In the workplace, people may abuse their power in several ways. 

“Power abuse happens when leaders exploit their authority to demean, control, or marginalize employees,” said Tamanna Ramesh, the 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 classic 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 abuse often excludes qualified candidates and breeds 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 research, there were 14.7 cases of discrimination, harassment and retaliation reported per 1,000 employees in 2024 – the highest level in nine years. This can include verbal abuse, sexual harassment, 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. The U.S. Equal Employment Opportunity Commission (EEOC) prohibits such retaliation, as it discourages employees from asserting their rights to be free from employment discrimination.
  • Micromanagement: Excessive control over employees’ work processes, constant monitoring and refusal to delegate tasks appropriately can signal abuse of power. Micromanagement undermines employee autonomy, stifles creativity and communicates a lack of trust that damages workplace relationships.
  • Intentionally embarrassing others: A leader who uses any excuse to embarrass others is inappropriately exercising their power. It could include sharing embarrassing stories about the targeted individual, mocking their mistakes, or making negative personal remarks against them.
  • Being aggressive: Whether it’s under the guise of a joke or chalked up to a bad day, aggressive behaviors are forms of power abuse. The behaviors may include shouting at employees, shifting blame, threatening job loss, or other harmful actions.
  • Seeking vengeance: It may seem harmless from the outside, but abusers often seek revenge through subtle approaches, such as “pranking” victims or messing with their belongings. They may also take a more blatant approach, acting out by conspiring against them or intentionally making them feel upset or hurt.
  • Manipulation: Abusers love to exploit peer pressure to coerce others’ support. Aware of the influence they hold, abusers twist situations and manipulate others to put their own interests before the betterment of the staff and company.
Did You Know?Did you know
In a study from HR Acuity, titled Workplace Harassment and Misconduct Insights, nearly 60 percent of respondents reported harassment or misconduct as the reason they left their place of employment, indicating the significant impact workplace behavior has on employee retention.

Why abuse of power happens (and psychology behind it)

Understanding the psychology behind an abuser’s actions can help explain — but not excuse — why abuse occurs. Even when power abuse occurs in professional settings such as the workplace, it is often driven by the abuser’s personal experiences and personality traits, in addition to the organizational environment.

Organizational culture and lack of accountability

“Power abuse persists due to a combination of poor organizational culture, structural hierarchies, and societal norms,” Harris said. “Traditional power structures often prioritize authority and results over collaboration and well-being, creating environments where abusive behaviors are normalized or ignored.”

Unqualified, incompetent, or distracted human resources personnel and people managers are more likely to be unaware of what’s happening at their company. Inadequate people management allows bad behavior, including power abuse, to thrive.

Harris also pointed out that “the absence of inclusive policies — such as equitable performance reviews or transparent promotion processes — can unintentionally reinforce power imbalances.” In contrast, “organizations that invest in inclusive leadership development create a culture where power abuse is less likely to take root.”

Lack of confidence or knowledge to report

People don’t always realize they are the victim of power abuse, which allows it to go unchecked. Sometimes they assume their experiences are normal and not worth reporting. Other times there isn’t a clear path to get help. Depending on who the perpetrator is, employees may not feel confident enough to report the problem, or they may doubt their ability to prove it.

Witnesses, too, often hesitate to get involved when they recognize power abuse in the workplace. Many times, they feel uncertain about their role in the matter or assume they are misunderstanding the situation, letting the issue persist.

Fear of consequences 

Even when they do recognize power abuse is taking place, victims and witnesses are often deterred from coming forward due to the potential repercussions, such as legal issues, fear of being wrongfully blamed, or job loss. Especially in instances in which victims cannot report the situation anonymously, they may fear workplace ostracization and choose to endure the mistreatment instead. Financial responsibilities can also impact one’s ability to fight back, because those with money or positions of power often have greater access to lawyers. 

Victims may also worry that nothing will be done to help them if they report the situation. If their claims aren’t taken seriously, a lack of consequences could empower the abuser further, leading to worse mistreatment than they’ve experienced already.

Ego and psychological drivers

Harris said power abuse 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. 

Research published in PMC in 2023 found that organizational social hierarchies play a critical role in power abuse. Power hierarchies attract narcissistic individuals and can perpetuate power differences, creating conditions where low-power individuals experience powerlessness that can lead to self-dehumanization and feelings of worthlessness.

A 2023 study in Nature found that narcissistic employees tend to develop an inflated sense of self and their abilities. These individuals overestimate their capabilities and may express both constructive and destructive ideas to fulfill their self-evaluation of their own uniqueness, sometimes at the expense of others.

Although seemingly a personal psychological issue, the consequences affect those around the person. “Unchecked individual power can impede or damage organizational culture by eroding empathy,” Harris said.

Psychological studies on power dynamics

The famous Stanford Prison Experiment, conducted by psychologist Philip Zimbardo in 1971, demonstrated how situational factors and perceived authority can lead ordinary individuals to engage in abusive behavior. In the study, college students randomly assigned to act as guards in a simulated prison began exhibiting sadistic behaviors toward those assigned as prisoners, prompting early termination of the experiment after just six days. The findings highlighted how power dynamics and institutional roles can transform behavior, though subsequent research has emphasized that explicit cues and leadership norms play a critical role in whether individuals enact such behaviors.

Silent supporters and group shun

Abusers like to have support for their cause. They often garner that support from subordinates and those in the workplace who are weak enough to fear that if they don’t join in, they will be the next victims. That approach can lead to a “group shun,” in which an individual is gradually ostracized by others in the workplace. This slow, subtle tactic is hard for those on the outside to recognize, leading targeted individuals to feel isolated. Over time, the isolation can result in feelings of paranoia or delusion.

The group shun enables the abuser and helps them avoid blame. It pushes colleagues to become accomplices — whether or not they agree — in an effort to avoid rocking the boat and protect their jobs.

TipBottom line
Set up your human resources team for success with HR tools that can help them better manage employee relations.

The consequences of power abuse at work

In a work environment, “power abuse undermines both individual well-being and organizational performance,” Harris said.

“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.”

Learn more about the potential consequences of power abuse below.

Decreased employee morale and productivity

Employees who are aware they are the victims of power abuse are less likely to be productive and engaged in the workplace when they’re constantly anxious about how their bully will treat them. Power abuse can greatly impact a staff member’s mental energy, leading to a loss of time and motivation to get work done or do it well. It can also result in more absenteeism and overall disconnection from the workplace as victims find themselves feeling isolated or lacking support from those around them.

>> Read Related Article: Ways to Stop Absenteeism in the Workplace

The business ramifications of power abuse may not be confined to the victim’s individual workload either. An entire team or department could be negatively affected if the mistreatment influences the dynamics in group meetings and projects or if the victim’s reduced performance causes more work for their colleagues.

“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 in which team members are uncomfortable expressing themselves or speaking out when they witness wrongdoing. That lack of open communication can lead to severe stress and reduce employees’ physical and mental well-being.

Over time, a stressful environment can take a toll on an employee’s health. Victims may begin to experience medical issues, including mental health challenges, weakened immune systems, and sleep disorders — all of which can lead to increased 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 

Reduced morale and a lack of employee well-being due to power abuse can drive many people to search for new jobs. Especially in situations in which the abuser stays in power, people may choose to quit rather than continue to endure the abuse if they’re aware their company won’t implement meaningful changes.

On top of potentially losing key team members, increased employee turnover comes with associated costs that can negatively affect a business’s profitability and growth. Companies face financial burdens from continuous offboarding and onboarding expenses when a toxic workplace leads to a constant hiring-and-firing cycle.

Legal risk and company reputation

Depending on the situation, a wrongfully treated employee may choose to sue the company. Whether their legal action is successful may depend on what happened and whether the employer did anything about it. An employer cannot be blamed for the abuse if they weren’t made aware of the situation. A business can be held responsible, however, if the staffer can prove the company ignored their situation and that the abuse targeted a protected characteristic, including disabilities, sexual orientation, or race.

Such a situation can have repercussions beyond litigation, causing a company financial damages and reputational consequences.

FYIDid you know
Some of the best HR software companies provide access to human resources experts who can help your business navigate legal situations and other problems that arise from thorny issues such as power abuse. See our ADP review and Gusto review for two examples.

How to prevent abuse of power in the workplace

Stopping power abuse and bullying in the workplace means implementing education and enacting support systems at an organizational level. Simply having an antibullying policy or code of conduct in place doesn’t always help. Where such policies do exist, they are often ignored or ineffective.

Consider the following ways to prevent the abuse of power in your business.

Leadership training and development

Harris recommends teaching company leaders and managers how to “foster equity and transparency, such as active listening, empathy, and cultural competence.” With these skills, “inclusive leaders are better equipped to recognize and address power dynamics that may harm others,” she said.

Company leaders can set an example by demonstrating accountability and respect, but they aren’t the only ones who should be educated on power abuse and what to do if they witness it. Your organization should practice a culture that encourages employees to be aware of behaviors or influences that may not be acceptable and to speak up about those behaviors. Train your team members to show courage not to participate, to call out bad behavior, and, when faced with the situation themselves, have the language to articulate clearly what is going on.

“When leaders intentionally elevate diverse voices and practice fairness, they create workplaces where power is a tool for empowerment rather than exploitation,” Harris said.

Whistleblower protections and reporting mechanisms

Establish a reporting system that allows employees to discuss workplace conflicts, grievances, or abuses with executive staff or human resources managers. 

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

The severity of the issue should dictate what kind of company intervention is necessary.

When initial intervention attempts fail to protect the employee from continued abuse, enforce escalating punishments, up to and including termination, in accordance with your company’s disciplinary action policy.

HR policies and accountability structures

HR departments should conduct regular audits to evaluate the effectiveness of harassment prevention measures, including assessing policy awareness among employees, the accessibility of reporting channels and the effectiveness of investigation procedures. Creating feedback loops through anonymous surveys and open forums helps HR identify shortcomings and foster a culture of trust.

Harris suggested companies “shift from hierarchical decision-making to inclusive practices that value diverse perspectives” and “invite team members to co-create solutions, ensuring power is distributed equitably.” When you create a “shared space of trust and respect,” you can “fundamentally [disrupt] the cycles of power abuse.”

TipBottom line
To improve relations between managers and employees, host team-building activities that bring teams together in safe, pressure-free environments.

The SAFE framework

When Ramesh’s clients seek help with power abuse, she advocates for what she calls the SAFE framework.

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

The protocol can apply to both the victim (when they recognize they are being abused in the workplace, document the incidents, call HR’s attention to the issue, and choose to leave the unsafe environment if the misconduct doesn’t stop) and the organization (when HR managers identify the abuse, document the incidents, provide resources for the victim, and punish or fire the perpetrator if they do not correct their behavior). This dual approach empowers employees and human resources personnel to take action and have agency.

Quick comparison table: healthy leadership vs abuse of power

Aspect

Healthy Leadership

Abuse of Power

Delegation & 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

Demands excessive work

Conflict Resolution

Fair conflict resolution

Retaliates against complainants

Impact

Positive culture, retention

Low morale, turnover, legal risk

FAQs on abuse of power

Abuse of power is the improper use of authority to influence employment conditions (hiring, promotions, evaluations) or create a hostile work environment through intimidation, threats or coercion. When it involves discrimination based on protected characteristics like race, gender or disability, it violates federal laws enforced by the EEOC.
Common examples include hiring favoritism, harassment, retaliation against whistleblowers, excessive micromanagement, public humiliation, aggressive behavior (shouting, threats), vengeful actions and manipulation. These behaviors prioritize personal interests over merit and employee well-being.
Document incidents with dates, times and witnesses. Report through HR, ethics hotlines or anonymous systems. For external complaints, contact the EEOC (discrimination cases) or Department of Labor (other violations). Whistleblower laws like Sarbanes-Oxley and Dodd-Frank prohibit retaliation.
HR develops anti-abuse policies, trains staff, establishes confidential reporting channels and investigates complaints fairly. They conduct audits, gather employee feedback, enforce disciplinary measures and build a culture of respect and accountability while ensuring legal compliance.

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

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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.