What do to do with a Manager who is good at her job, not good with employees?

One of our members has an issue, and we are looking for your input and advice.

Here is a synopsis of the issue:

We have a manager at one of our locations who is short-tempered, and often inappropriate in the way she deals with employees. The top management at this location and most of the complaining employees agree that she is great at what she does, but is not good with people.

To some degree, the management believes that "she is just that way" and others should understand and work within that.

I disagree and believe we must take some level of action, but I am not sure what.

The question is, what advice would you give, relative to addressing her inappropriate and unprofessional behavior...given the fact that management has already defended her and apparently feels they cannot risk losing her.