The three most dysfunctional organizations I've ever heard of were Enron, the executive suite at Time-Warner, and the geology faculty at the University of Oklahoma back in the 70's. The last was so bad, the chairman (a scholar and a gentleman who ran the Oklahoma Geological Survey on the side) had to call in help from the psychology department to try to sort things out. Masters' and doctoral candidates were resigning right and left. A Ph.D. board chairman retired from Cities Service, I think it was, to take the helm of either the grad school or the geology department -- the former, I think it was -- and he lasted only 18 months before quitting the place to seek the quieter throat-cutting of the suite once again. Too raw, too messy for him. Too much blood on the floor. I left myself, with a 3.5 average, but for other reasons.
That's my "faculty story".