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Wacky office

Hmmm office politics are amazing. I'm working in this company from past 15 months. My boss is bit fickle minded; don't know what mood he will be in what time. His attitude like u report to me ,I'm your boss and I'm the only perfect person here.
well my group is as usual full 'want to save my ass first' types.. I'm so pally with this girl P. P is a good resource to have, she is a bit low on making up stories and brushing up the work she did ,not a show off type ,she suffered a lot. Well my Manager M created a lot of problems for her.. Well those are problems for her goes like this
Leave:
P fell ill calls M in morning and asks for leave
M gets irritated and says she cannot take adhoc leave like this and mails her that its unacceptable behavior blah blah..
P starts crying.. Almost..
Many scenarios like this.
It seems whole team has issues with M ,So his year end rating got screwed (360 Deg review ,given by direct reportees.. ha ha )
Now he is even more irritated as his boos asked explanation on this.. Now it seems his boos asked to release whole team. So he arranged an internal Intw for P to other group. And P was not able to answer some process related stuff. And M made this a big issue and scolded her in Team meeting ,Actually he can constructively say those remarks to her on a one-on-one and can correct her as he is her mentor.

Now P wants to Quit.

I don't understand why people want to run away from problems and problem making people. What do we loose if we say -- Hey I don't want you to say these things to me though you are my boss I really don't care for your whims. I'm here to do my job.

If she runs away from here, and joins other company what guarantee that she don't find same type boss there. What does she loose to confront him If she decided to leave at least he will realize that right?

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