Discuss the incompatible biases of managers and subordinates regarding internal and external attributions about poor performance.

Student answers may vary. The leader's behavior toward the subordinate is consistent with the attribution about performance. For example, effective behavior by a high-quality exchange subordinate is more likely to be praised, and mistakes by a low-quality exchange subordinate are more likely to be criticized. Thus, the leader's perception of a subordinate tends to become a self-fulfilling prophecy. Low-quality exchange subordinates get less support, coaching, and resources, but the manager is more likely to blame them for mistakes or performance difficulties, rather than recognizing situational causes and the manager's own contributions to the problem. The bias of many managers toward making internal attributions about poor performance by a subordinate is in sharp contrast to the self-serving bias of subordinates to blame their mistakes or failures on external factors. These incompatible biases make it more difficult for the manager to deal with performance problems. The manager's bias results in greater use of punitive actions, which are resented all the more by subordinates who do not feel responsible for the problem. Thus, a major implication of the attribution research is the need to help managers become more careful, fair, and systematic about evaluating subordinate performance. Managers need to become more aware of the many options available for dealing with different causes of performance problems and the importance of selecting an appropriate one.