Narcissists, similar to sociopaths (i.e. those with antisocial personality disorder), can wreak havoc because most of us are not equipped to detect their deceptions. For a recent study, please check “Narcissists rise to the top because people mistake their confidence and authority for leadership qualities,” by Anna Edwards, 11 Aug 2011, Mail Online.
What do you do if your boss is a narcissist? If at all possible, find another job.