A lot of bullying behavior could be halted with "proactive management," she added. "Give compliments, awards," Durré said. "People need to be acknowledged, thanked and appreciated."
Recruiting and interviewing processes might need to be re-examined, Dawson said.
"Recognize the traits of people who tend to want to dominate things, who don't get along with others," she said. "Someone might look good on paper but how do they interact with people in the office? People who don't speak or make eye contact - those are good indicators of people who don't want to be around other people. It's all about hiring the right people, and instituting and enforcing policies."
For employees, confronting the bully is a necessary first step, says Vicky Oliver, author of Bad Bosses, Crazy Coworkers & Other Office Idiots and the forthcoming 301 Smart Answers to Tough Business Etiquette Questions. She suggests making a private appointment with the bully to discuss the situation. Remain composed and give examples.
"Many times if ridicule is involved, the bully will try to claim it was all in good faith - he was just joshing. Nevertheless, you should politely persist," Oliver says. "The reason this can work is because you are showing a little flint yourself. You are not going to cower in fear."
As a manager the hope is always that two employees can work it out, but if you notice bullying by an employee, you can intervene. Confronting the bully is an obvious first step. You can also approach the employee you feel is getting bullied to discuss the situation and see if they would like for you to act as a mediator.
Experts also advise documenting each episode and conversation, and you should avoid reacting to the bully if at all possible. If you notice bullying is affecting the health of one of your employees, suggest that they see a physician. You can also suggest a worker seeks out support groups, therapy, and, if needed, medication to deal with any anxiety or depression. But you should encourage an employee who is being bullied to talk to the bully first before escalating the issue.
Dig Deeper: Do You Have a Workplace Anti-Harassment Policy?
Managing an Office Bully: The Role for Human Resources
Though employees and managers may not want to admit they have lost control of a bully, it may be necessary to call in the human resources department to help defuse a situation. For the target of bullying, going to HR (either alone or in a group) can be empowering, Lynn says. Of course, in a small company where the owner serves as the de facto head of human resources, this option may be easier said than done.
If an employee comes to you with a complaint, you should ask them to do a little self-reflection: Is the problem bigger than the bully? Does the employee feel the overall workplace is hostile, or is it just one individual? Could the problem be solved by reassigning the employee to a different role or manager?
"If there is another role in the company that you are seeking, spell that out," says Lynn. "Help them to see positive outcomes because you don't want to lose talent."
That said, be careful with whom you share news of a bullying incident with. You want to avoid escalating the issue because you don't want either employee to be labeled as a "complainer" or worse by his or her peers.
Dig Deeper: Check Out This Downloadable Employee Disciplinary Action Form and Checklist
Managing an Office Bully: Legal Guidelines
Until now, there has been very little legal guidance governing workplace bullies, but that is likely to change in the next few years. In New York state, for example, lawmakers are attempting to give employees some recourse through an anti-bullying bill, which passed the state Senate in May. The pending legislation would help to address the most outrageous and egregious forms of prolonged bullying, Schlict said. "Bullies will now have (to) control their own behavior or find themselves facing the possibility of a civil right of action."
A similar bill is working its way through the Illinois legislature as well. Approximately 17 states have introduced healthy workplace bills since 2003 though none have passed.
Dig Deeper: Small Business Employment Law
Managing an Office Bully: Additional Resources