When the person in charge (supervisor, manager, etc...) is a total witless dick who can't do anything right. A negative effect on morale will necessarily follow during a prolonged reign of error.
Beaten Down Employee #1:
We all have to stay late tonight because Ned got the dates wrong and inventory has to be completed before morning.
Beaten Down Employee #2:
I'm so fucking tired of Ned's Reign of Error, he must be dealt with, swiftly!!!
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