In the first example, the board members who disagreed with the budget increase were told they did not have faith in the director. With this dynamic, one person takes on a huge amount of authority and responsibility and everyone else lets them. If they advance an idea or are in favor of one, their opinion carries inordinate weight. All decisions are then perceived in terms of being for the person or against them. Discussion of the content of an idea becomes impossible.
Conformity is the highest value.
Here there is no one person whose feelings are at stake. But there is little room for making change. In organizations that do not have the imagination to go beyond what they've done in the past, suggestions or new ideas are seen as unhelpful or even a hindrance. People making suggestions are handled politely but firmly. Eventually, either they cease to bring up new ideas or they are labeled as troublemakers and made to feel marginal.