Department of Building and Housing chief executive Katrina Bach has been warned after an inquiry found she "manhandled" and swore at a staff member.
An independent inquiry by State Services Commissioner Iain Rennie found Ms Bach breached the department's code of conduct in the way she treated junior employee Jaime Rawlings.
"I have found that the department failed to deal adequately with the matter once it was bought to the attention of relevant staff. I understand the department has reviewed its policies and practices for handling staff complaints," said Mr Rennie.
In a rare move the commissioner released a summary of events in the matter.
Ms Rawlings raised a personal grievance last May about the way the chief executive had treated her in the previous two months.