Leaked reports suggest disorder and distrust reigns within the Fraser Coast Regional Council.

An ‘Organisational Review and Development Plan’, conducted by CPEM Consulting Group, has been obtained by the ABC.

The report allegedly attributes a “significant risk around psychological safety across the organisation” to “councillor behaviour of in-fighting, political game playing”, “unsustainable resourcing pressures” and other factors.

Twenty-two per cent of staff reported having confidence in senior management, while job satisfaction dropped from 86 per cent in 2015 to 46.3 per cent now.

“We collected literally hundreds of comments regarding the staff concerns about the lack of capacity of senior management,” the report said.

While is acknowledged there were some “very good” senior managers, it found “the general sub-themes in this area were disrespect and harassment, lack of appreciation, and a general lack of ability of [council] management”.

“We all walk on eggshells around here,” it quotes one worker as saying.

“The manner in which some coordinators and management speaks to ground level staff is inappropriate, degrading and unacceptable.”

The council dismissed its chief executive Lisa Desmond in February this year.

The report found she had been an executive “who excessively micromanages and has the tendency to be highly autocratic”.

However, staff close to Ms Desmond's office rated her highly as a leader, stating “the CEO is willing to listen and will support you”, and “I am quite inspired by the CEO and feel really sorry for the CEO at the moment, and she is personally attacked”.

Still, there was a pervasive “fear to make decisions” and “constant concerns for re-work”.

“The perceived lack of strategic direction from council and the bypassing of due process by councillors was creating a feeling of frustration and perceived favouritism,” the report states.

“Many officers reported frustration due to not being able to perform their core function within their directorate, due to the continual need to respond to demands of councillors.”

CPEM made dozens of recommendations including having the Mayor and councillors “undergo significant training and development focused on appropriate councillor behaviour”, so that “inappropriate micromanaging behaviour ceases from councillors and allows the operational and management staff to perform their duties without inappropriate interference”.

“Some participants described the ‘council arguing like school kids’ and because of this we are ‘not being able to do our job properly’,” the report states.

Some survey respondents said it was “common for many workers to change their shirts prior to going down town, so as not to be identified as a Fraser Coast Regional Council worker”.

“People are not willing to question decisions that are being made at senior and supervisory levels,” the report states.

“Example after example was given of how senseless decisions were made and followed because ‘no-one would listen’ or ‘we didn't want to rock the boat’.

“Commonly, we heard words to the effect that ‘the money that gets wasted around here is an absolute joke’,” the report states.

However, “in some cases [council workers’ fears] appeared to be based on rumour, innuendo and third-hand experience within the organisation”.

The State Government is watching, with Premier Annastacia Palaszczuk issuing a stern warning late last year.

“I need a council that can work with me to drive jobs in this region,” she said.

“If they can't work with me they should get out.”

A spokesperson for the Minister for Local Government, Mark Furner, said “he will act in the best interests of the community in considering what other state intervention options are appropriate”.

“The Minister has appealed to the council to reconcile its differences to get on with the job of focusing on the needs of the community and the delivery of services.”