A vital step in creating organizational dysfunction is manipulation.
This method belittles subordinates, empowers enemies, and confounds all.
Manipulation falls generally into two categories. The first is
manipulation through the use of fear. The fear can be fear of losing
one’s position within the company, fear of public humiliation, or fear
of punishment. Regardless of the fear tactic employed by the
manipulative manager, fear is only a short-term motivator, if it is a
motivator at all. Subordinates lose respect for the leader and, even
worse, those not punished live in fear of whether or not they will be
next.
The second form of manipulation is the use of rewards. Rewards, on the
surface, seem like a good motivator. However, they are misused quite
frequently. Rewards often become expected and become demotivators when
they aren’t increased. Unless there is a new reward, the performance
will return to a level at or below the original performance level.
Another misuse of rewards is when only certain groups get the rewards.
The lack of reward becomes a punishment to those not rewarded.
Finally, the carrot of a reward is not a motivator when there is a
threat of the humiliation of not achieving the reward.
Dysfunction ensues when manipulative management is used. The result is
exactly the opposite of what the manager thinks he will accomplish.
The results range all the way from apathy to hostility. In no case is
the result a more highly motivated and effective organization.
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Dysfunctional Management - 12 Steps 
