Management (at least in the program I worked at) tends to find "faults" in their employees. Program Managers are too focused on the negatives while losing sight of the positives.
End result:
1. Toxic atmosphere
2. Disengaged staff
3. Lack of creativity and innovation because decisions are made without staff input
4. Low-morale
5. High employee turnover
6. Lack of trust between employees and management