The Playground Bully Boss

One of my friends relegated this to me just 20 minutes ago.

Their department shifted office from one floor to another building next door. Prior to the move, seats were allocated by the manager using a floor plan. On the day of the move, employees went to their allocated seats and unpacked in order to resume work as soon as possible. In the late evening, the manager identified a more suitable seat and asked his support staff to get the seat incumbent, a lady, to move out. All this time, the manager in question was not in his seat and communicated his intention through the support staff and through an email to the lady occupying the coveted seat indicating that his current seat is not ideal for his work. The lady in question blew her top and in this day and age of open seating arrangement, of course, the other office workers looked up. Once cooled off, she packed her stuff and cleared out, letting her manager have the seat.

This is a first time I have heard of a boss who pulled rank to get a seat that he had the liberty to choose in the first place. Do you have incidences like this to share? What sort of remedial counselling should we use on this bully? What should the victim do?