Jill Evans, 54, was told that her behaviour at Heolgerrig Community Primary School in Merthyr Tydfil amounted to unacceptable professional conduct.
She had denied nine charges against her at the General Teaching Council for Wales hearing in Cardiff.
But three charges were proved and two other partially proved.
Allegations upheld by the teaching council panel included intimidating staff to sign a letter opposing a new playground at the school.
She also allowed a caretaker to supervise a class while a teaching assistant had her hair cut.
The chair of the panel, Jacquie Turnbull, said Ms Evans' actions had been "beyond firm management".
The head was also accused of giving her son's partner a job as a teaching assistant, in breach of council guidelines and processes.
It was not proven that Ms Evans had improperly used grant funding and the panel said there was not enough evidence to prove that she breached confidentiality or failed to address health and safety issues at the school.
An allegation that she had falsified minutes of a staff meeting were also not proven.
Gwilym Roberts-Harry, representing the teacher, said Ms Evans had had "an excellent career until this stage" with positive inspection reports at Heolgerrig and other schools she had worked at.
The panel's chair said that was accepted, but said she would not be allowed to teach for two years in light of their findings.
Mr Roberts-Harry said it was unlikely Ms Evans would return to work in the teaching profession again, and was likely to retire.
A former primary head teacher who bullied staff has been struck off for two years by a disciplinary panel.