Here are the steps you must take, to deal with a bad boss.

1: Assume no bad intentions.

While some of the things your boss does may make you unhappy at work, it is probably not why they do it. Until proven otherwise, assume that they mean well and are simply unaware of the effects of their actions.

2: Classify your boss

Which of these three categories does your bad boss fall into?

1. Doesn’t know he’s bad.
2. Knows he’s bad and wants to improve.
3. Doesn’t want to know he’s bad or doesn’t care.

3: Let your boss know what they could do better

Presuming your boss is in category 1 or 2, you must let them know what they can improve. This can be scary because of the power imbalance between managers and employees, but it needs to be done. Managers aren’t mind readers, and they need honest, constructive feedback.

4: Do it sooner rather than later.

If you have a bad relationship with your boss it’s vitally important that you do something about it as soon as possible. It can be tempting to wait, thinking that it might get better on its own, or that your boss might be promoted, transferred or leave. Don’t wait – sooner is better.

5: Choose the right time to talk.

In the middle of a meeting or as a casual hallway chat are not the best ways to approach the subject. Make sure you’re in a quiet undisturbed place and have time to talk about it fully.

6: Explain the effects on you and the effects on your work.

Be specific and tell your manager, “When you do X it makes me do Y, which results in Z. If you can show how his actions reduce motivation, hurt business, or increase expenses, you’re more likely to convince him that this is a serious issue.

7: Suggest alternatives.

If you can, explain what they could do instead and why that would be better. Suggesting specific alternatives makes it easier to make positive changes.

8: Make a plan and follow up.

Agree to follow up at a later date, to evaluate the new situation.

9: Praise your manager when he gets it right.

When your boss gets it right, remember to praise them. Many managers never receive praise because people mistakenly believe that praise should only flow from managers to employees.

You may be nervous about approaching your manager and giving them advice, but good managers are truly grateful for constructive, useful feedback, and will appreciate any opportunity they get to learn how to do a better job.

10: If all else fails: Get out of Dodge

If you’ve tried to make it work and can’t, it’s time to get away. You can go for another job inside the company (with someone you know to be a great boss), or in another organization.

Source : http://positivesharing.com/2007/01/how-to-deal-with-a-bad-boss/