Perhaps the first instance of research into the "Self-Fulfilling Prophecy" is that of Clever Hans, a horse, in 1911. Hans was trained by his master, a German mathematician named Van Osten, to solve basic mathematical problems related to addition, subtraction, multiplication and division. Unlike other animals who were trained to perform such functions, Hans could provide the correct answer even when his master was not present. Over the course of the experiment, it was found that Hans would answer the questions correctly only if he could see his questioner. The presence of the questioner caused Hans to pick up subtle signals--a raising of eyebrows, the leaning forward towards him--and fulfill expectations.
In 1968, Robert Rosenthal and Leonore Jacobson researched this phenomenon. Rosenthal was on the faculty at the department of psychology and social relations at Harvard University, while Jacobson was a principal at an elementary school. Their study claimed that the expectations that teachers have from their students can have either a positive or negative impact on student performance. The students who attended the school were given intelligence tests before the study. Before the academic year began, the researchers pointed out to the teachers the names of 20 percent of the students who they said showed "unusual potential for intellectual growth." The students had been picked at random, with no relation whatsoever to their performance on the tests. Eight months later, the students were administered the intelligence tests again, and the same 20 percent scored significantly higher, compared to their peers.
Rosenthal and Jacobson's study concluded that if teachers show increased expectations of some students, then the children showed greater improvement in their performances. The teachers, whether consciously or unconsciously, behaved differently towards their students, which led to improvement in the performance. They concluded that when certain behaviors are expected from others, we are likely to do things which make the expected behavior more likely to happen.
The "Pygmalion Effect" is something that can help managers achieve their tasks and goals; it is important to remember that the performance of the team depends not only on the abilities of the individuals in it, but also the way they are treated. People who are expected to succeed are more likely to; they pick up hints from their superiors and co-workers consciously or unconsciously and conform to the success that is expected of them. When a manager expects the best from his team, the members pick up cues and perform accordingly.