Self-enhancement bias and self-effacement bias influence how individuals perceive themselves and can impact behavior in organizations.
Self-enhancement bias is the tendency for individuals to overestimate their performance and capabilities, while self-effacement bias is the tendency to underestimate one's performance and abilities. These biases are influenced by personality traits and can lead to consequences such as misunderstandings in organizational settings. Narcissistic individuals are particularly prone to self-enhancement bias, while those with low self-esteem may exhibit self-effacement bias.
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