how to deal with an uneducated boss?

He has no idea of how to manage except can only do commanding. he mostly makes mistakes without recognizing and learning from them, he does every thing he wants on employees whether they deserve or not such as fines, firing, smothering , blackmailing and etc.
The other disgusting thing is that the manager sees what he is doing and unfortunately is not able to do anything for he (the boss) came over him and seem to be the manager because he is doing even the manager s work. I work for telecommunication company. we (the employees he is their boss) all are academic level and all have graduated from universities (degree holders) and he does not even have diploma. I really need your advice of how to work and treat with him.
thanks for your answer.