How to deal with stubborn boss

One of my friend is working in a good company. He has joined this organization recently. The very first day he came after the interview, he was very pexed. He shared his experience of interview. His boss grilled him so much that he was dead sure that he will not through with it. However it came with the surprise that he has been selected after a week. Many of his friend suggested him that usually employers do so to check the stability and confidence of prospective employee. They named it pressure interview. The confidence of my friend was almost shackled. However, he joined the organization sidelining his intuition of being screwed every time.

A few days passed when things started turning out other way. Every time he reaches office, he used to be afraid of loosing his job or to be rebuked for every other thing. His boss started reminding him that he is getting much more than what he deserves. Nagging in all his acts became a regular fashion for his boss. His senior also tried to over burden him by imposing some additional responsibility on his shoulders.
He tried his best to prove his worth and no longer his personal time also  became a part of official job. He started bringing official task at home. Despite he hardly earned any praise from his boss. And sooner more and more responsibility added to his job profile. He often used to say, "if you do something which is not part of your job, sooner it becomes the part of your job". Every now and then his boss expects more from him and for every single mistake he has to listen the gosh lecture from his boss.
He also shared his concerns with his collegue. But most of them were so much psycopant to the boss that either they conyed his private discussion to the boss or tell him to keep mum. An old adage goes, "The boss is always right."  And everyone were following it religiously, no matter how stupid it sounds. The person lost his confidence and became a pawn of official politics.
One day while checking the books of account he founds that a company's supply has been made despite having a huge overdue. However, in a general meeting when the upper cap of overdue was already decided and it was mandate to strictly adhere to the guideline. He immediately send a mail to his associate who made this transaction done. The reply was sent to my friend marking a copy to his boss as well. The entire matter got exclated. And in no time the entire melodrama converted into personal vendetta. However, it could not end up until my friend send an apology mail to everyone.
Now the only thing which goes beyond his apprehension, was who's mistake it anyway.
As per my understanding it's mistake of none but a perfect example of working under stubborn boss. There are some key points which will throw some light on this issue.

1. Working with lala company:-  with my understanding and experience this can happen in any company but usually it happens in lala company (a company with low turnover and smaller in size). A lala company has no work culture and no set of rules. In fact regulations varies from person to person. One would be allowed to wear any type of attire where as the rest would have been told to wear only formals. Beneficiaries can be named psycopant as well. They are the back biter and news mongers. Usually your boss might fall in the category of credulous people. And they are fastidious too.

2. Money minded:- usually a stubborn boss is a money minded person. He equates everything with money. No matter how much effort someone is putting and how much someone is capable of, at the end he will hesitate to sign on your pay check. He always repent to not using his negotiation skill properly to hire someone. Many a time he would also try to make the deduction in one's package.

3. Prisoner of past:- a stubborn boss also paranoid with his personal and professional failure. And as a result he always blames to others and situations for low performance.

4. Maglomaniac:- such people are maglomaniac too. They often site their own or their family members example for every good reason. They often project themselves intelligent and know it all type.

5. Short sighted:- an stubborn boss is always short sighted. They will not make big goals rather do the things on their whim. No matter even if they have to incur big loss.

6. Dual bladed sword:- these people are not firm minded. And poke their nose in everything, no matter of it means wasting their precious time. And one can not take guarantee it that even if someone relegiously follow their instructions. They are fickle minded.

7. Trust issue:- such people have trust issue and always see others with dubious view. They refrain people sharing the necessary information as well.

In no time I got the news that my friend left the job. And that is what he should have done long before. I often say choose your boss not the organisation. And finding a good boss is like marrying with a girl of your choice (love marriage) where as working with any other boss is like marrying with a girl of your parents choice and keep on making adjustments in the life.