Principles of Management CLEP Practice Exam 2025 – Your Comprehensive All-in-One Guide to Exam Success!

Self-serving bias refers to the tendency individuals have to attribute their successes to internal factors, such as their own skill or effort, while attributing their failures to external factors, such as bad luck or situational pressures. This cognitive bias serves to maintain a positive self-image and protect self-esteem by allowing individuals to take personal credit for their achievements while deflecting blame for their shortcomings.

Understanding this concept is crucial for anyone studying principles of management, as it can influence workplace dynamics, performance evaluations, and overall team morale. When leaders and team members are aware of self-serving bias, they can work towards more objective assessments of performance and accountability within a team or organization.

The other answer choices reflect different concepts but do not capture the essence of self-serving bias accurately. For example, attributing all outcomes equally to personal attributes and external factors misrepresents the typical pattern exhibited in self-serving bias. Similarly, while assigning internal factors to successes is correct, the mention of external factors for failures is central to defining self-serving bias, and the options that discuss luck or blaming others miss the key element of internal versus external attribution presented in the correct choice.