Professor Dov Eden from the University of Michigan has done some work on self-fulfilling prophecies that shows that if a manager believes that his or her staff have high ability, and they convey that belief to them, then individuals will achieve more. And the converse is also true.
The takeaway?
That people need to know that they’re considered able, and doing well, in order to increase their own belief in their capabilities, and to help them to raise their expectations of themselves.