Dysfunctional leadership creates a self-sustaining cycle where employees vying for promotion mimic the toxic behaviors of their boss. They do this to endear themselves to the decision-maker, believing that demonstrating a better leadership style would disqualify them from the role.

When leaders ignore valid concerns and demand commitment, they don't get genuine buy-in. Instead, they foster 'malicious compliance'—a passive-aggressive rebellion where the team does exactly what was asked, knowing it will fail, effectively letting the leader's bad decision implode.

Leaders often misinterpret a lack of pushback as consensus. In reality, especially in low-trust environments, silence is a self-preservation tactic. Employees stop offering warnings or alternative views when they fear their career will be limited, making silence a sign of low psychological safety.

When leaders ask for input but have already decided on the outcome, it creates a 'charade' of empowerment. This practice is incredibly demotivating for team members who believe they have genuine autonomy, only to find out their work was irrelevant.

A leader's desire to be liked can lead to a lack of candor, which is ultimately cruel. Avoiding difficult feedback allows underperformance to fester and makes an eventual firing a shocking surprise. This damages trust more than direct, consistent, and tough conversations would have.

"Defensive leadership," such as using surveillance software to monitor remote employees, is a form of overmanaging driven by cynicism. This communicates a profound lack of trust, which demoralizes workers and incentivizes them to do only the bare minimum.

Distrust on teams isn't a single event but a progression. It begins with Defensiveness (an early warning), moves to Disengagement (withdrawal), and ends in Disenchantment (actively turning others against leadership). Leaders must intervene in the defensiveness phase before the damage becomes irreversible.

Personal insecurities and unresolved issues in a leader directly shape their organization's culture and processes. A need for control leads to micromanagement ("come see me before you decide"), while fear of conflict leads to being a doormat. These "policies" limit team autonomy and growth.

A cynical workplace isn't just unhappy; it's inefficient. Lack of trust leads to higher "transaction costs"—the money and time spent on excessive contracting, monitoring, and arbitrating disputes. This makes trust-based organizations inherently more efficient.