My boss's office is right next to me (literally 10m apart) yet he will always call me (telephones me) to come to his office to talk to him instead of walking to my office (which I agree might not be always possible). Although working so close-by it is perhaps more courteous to walk to colleague's office instead of calling, it worked fine so far but last time around, someone was in my office and we were in the middle of an important conversation when my boss called and I chose to not take his call as I thought it would be rude to the person I am talking to. I knew he wanted me to come to his office which I thought I would do anyway after finishing my conversation, but he walked out of his office and questioned me why I wasn't taking his call. He is sort of "my way or highway" type of boss and everyone in the department has a grievance against him mostly related to etiquettes. He is a very vindictive person and I could see that he was not pleased with me for not taking his call and I suspect he would try and harass me later on something else. I was wondering what the protocol is under these circumstances and how I should react?
If he's your boss in the direct chain of command, then pick up the phone, tell him you're in a meeting and give him a time when you can get to his office. If he insists then tell whoever you're meeting with that it's your boss calling and they should understand.
Most things can be fixed by communicating, very few things can be fixed by ignoring them.
If you're already looking for a new job, then soldiering on politely until you get one is a good idea.
You're describing an unhealthy situation and, as such, it does not seem to provide for a win-win solution. According to your description, you are faced with "who do I offend" dilemma.
Assuming that your assertion that
everyone in the department has a grievance against him is accurate, then others would be probably be understanding about the situation and would not hold a grudge against you for giving a priority to your boss's demands.
You also need to carefully consider what exactly makes you stay there. Are the rewards really outweigh all the unpleasantness you have to endure?
Pardon me for stating the obvious, but let me remind you that we generally do not have control over the behavior of other people (and, especially, our bosses) and can only modify our own responses. Baring the extreme circumstances, nobody can make you feel harassed if you chose not to.
If you have reasons to stay then take an attitude that all this comes with the territory and you're compensated in such-and-such specific ways to treat it as business as usual. If, however, you cannot justify you enduring such treatment, then put your effort in getting out of there.