How to Damage Morale and Create a Toxic Culture in 3 Easy Steps

Creating a toxic work environment is easier than you think. It doesn't require grand gestures or dramatic actions—often, it's the small, everyday decisions that can snowball into an atmosphere where morale plummets and employees start to disengage. If you're looking to wreck your team’s spirit and build a culture of distrust and frustration, follow these three easy steps.

But if you’re a leader who actually cares about building a positive, thriving workplace, I recommend you don’t follow these steps. Let's dig into why these behaviors destroy morale and contribute to a toxic work environment.

Step 1: Avoid Hard Conversations and Just Make Blanket Personnel Policies Instead

Ah, the easiest way to undermine your team: Create broad, sweeping policies that address issues without ever addressing the underlying problems or having a conversation with the individuals involved. It’s like trying to fix a leaky faucet by turning off the water supply to the entire house. Sure, it might solve the problem in theory, but it also creates bigger issues elsewhere.

The most common examples of this in workplaces are dress codes, vacation policies, and tardiness rules. Here’s how this plays out:

Let’s say one employee has been coming in late consistently. Instead of having a candid, constructive conversation with that person about their punctuality, you decide to implement a company-wide policy that penalizes all employees for tardiness. The problem with this? It doesn't address the real issue, and it alienates the rest of the team, who are likely following the rules but now feel punished for someone else's behavior.

According to Gallup’s State of the American Workplace report, engagement and morale drop when employees feel like they’re being punished for the actions of a few. Blanket policies create resentment and undermine trust. Your employees aren’t dumb—they know when a policy is designed to address one person’s behavior but affects the entire team. Instead of fostering open dialogue and growth, this just creates frustration and confusion.

Research Tip: A Harvard Business Review study found that when leaders avoid difficult conversations, employees feel disconnected, confused, and disengaged. Open communication is key to fostering a culture of trust and growth. Without it, you're left with resentment, confusion, and a toxic atmosphere.

Step 2: Talk About the Real Reason You Had to Make the New Policy to Everyone Except the Person It Was Actually Made For

Here’s a classic move in toxic leadership: Addressing the issue that led to the new policy by talking in vague terms to everyone, except for the person who actually caused the problem. You know the drill: You make a sweeping announcement about how the new vacation policy or dress code is "necessary" because of some unspecified behavior, but you never address the individual involved. This strategy might seem harmless in the moment, but it’s a surefire way to breed distrust and resentment.

Why does this damage morale? Simple: It makes people feel like they’re being talked about behind their backs, and it leaves the person who actually needs feedback in the dark. Instead of directly addressing the issue, you create an environment where everyone is guessing who the “problem child” is, and that leads to unnecessary drama and division among the team.

The real reason this is toxic? It’s a failure of leadership to take extreme ownership of the situation. Jocko Willink, in his book Extreme Ownership, emphasizes that leaders must take responsibility for their team’s performance—good or bad. Shifting the blame onto the team or creating vague policies is the opposite of taking ownership. It’s a sign of a leader who is avoiding confrontation and, in doing so, eroding trust.

Research Tip: According to Deloitte’s Global Human Capital Trends report, lack of transparency is one of the leading causes of disengagement in the workplace. Employees need clarity and direct feedback to understand what’s expected and to feel valued. When you fail to have hard conversations, you create an environment where rumors and negativity thrive.

Step 3: Keep Blame Shifting and Make Excuses for Inaction

Here’s the clincher: When things go wrong, don’t take responsibility. Instead, blame shift. Make excuses. Play the victim. If your team is falling apart, don’t look inward and ask, “What can I do differently?” Instead, blame your employees, the circumstances, or anything but yourself.

This approach is a surefire way to create a toxic culture. When you don’t take responsibility for the state of the team or the company, you set the tone that it’s okay to avoid accountability. And that’s a toxic message.

When you’re a leader, you don’t just get what you preach—you get what you tolerate. If you tolerate poor performance, blame-shifting, or lack of accountability from yourself or others, it will become the norm. And once that happens, you’ll watch your culture erode as people disengage, morale declines, and the team starts to feel like no one has their back.

Research Tip: The Center for Creative Leadership found that one of the biggest challenges for leaders is fostering accountability. Leaders who avoid accountability or fail to own their mistakes breed a culture of disengagement, where employees feel they’re not responsible for the outcomes, and morale suffers as a result.

Take a Hard Look in the Mirror and Own It

Let’s get real for a second. If you want to lead a thriving team, you have to take a hard look in the mirror. Ask yourself honestly: Are you falling into these traps? Are you avoiding the hard conversations? Are you making vague policies that hurt your team? Are you blaming others for things you could have controlled?

If you are, stop.

It’s time to take ownership, show up, and lead with transparency. This is how you turn a toxic culture into a thriving one. Take the time to address issues directly, communicate clearly, and take responsibility for the culture you’re creating.

Research Tip: According to Gallup, the most effective leaders are those who are willing to take ownership and be accountable. Employees trust leaders who model responsibility and who are consistent in their actions and words.

Conclusion: Own It, Lead It, Fix It

To build a positive, thriving culture, you have to show up as a leader who takes ownership, has tough conversations, and actively works to create an environment where people feel heard, respected, and motivated. If you’re avoiding these things, you’re damaging morale and creating a toxic culture.

Take a good look in the mirror and be honest about where you might be slipping into these toxic behaviors. The good news? You can fix it. The first step is acknowledging it, taking ownership, and doing the hard work.

If you’re feeling brave, share in the comments—where have you caught yourself falling into these traps? Let’s work together to create workplaces where morale is high and toxic culture is a thing of the past.