Self-efficacy, which is one’s belief in one’s capacity to perform, has become one of the most popular concepts in management and psychological research (Latham & Pinder, 2005). For example, Bandura’s (1986) book on social cognitive theory, in which self-efficacy is the “key mechanism,” and his 1997 book devoted to self-efficacy are the two most highly cited references in organizational psychology between 2001 and 2005 (Landers, 2009). Moreover, the large number of studies involving self-efficacy has spawned several meta-analyses that document positive relationships with performance and other outcomes (see, for instance, Bandura & Locke, 2003, where they cite nine meta-analyses). Because of this research and the appealing nature of the idea, organizational researchers have endorsed the concept, suggesting that organizations would do well to increase selfefficacy beliefs among their employees (Colquitt, LePine, & Noe, 2000; Gist & Mitchell, 1992; Salas & Cannon-Bowers, 2001; Wood & Locke, 1987). In this chapter, we question the usefulness of that advice. Instead, we suggest