If there is a course in remedial management, enroll him in it. This person is not a manager, but rather is a bully, a buffoon, and a brat. He is also a walking liability for the company.
The idea that the phrase, "I know I shouldn't be saying this," somehow magically shields him from any possible repercussions for what may come out next is sheer folly. This type of behavior has a negative impact on employee satisfaction, teamwork, commitment, and productivity.
You and some of your associates should approach him on a businesslike basis and let him know your feelings. Be sure that he understands the present and potential costs that are associated with his behavior, and clearly indicate that you would like it to stop.
If his offensive comments continue, you and your group should approach senior management. It is important for senior management to know that this is going on in your department, and it is even more important for you to know what senior management does about it.
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