Abstract

The purpose of this article is to demonstrate a theoretical correlation between the transparency illusion, a cognitive bias that makes people believe that their internal states are more apparent to their communication partners than they really are and the Pygmalion effect. and the Pygmalion effect. The research on Pygmalion (i.e., self-fulfilling prophecy) offers insight into the process by which management can influence employee sincerity. Analyzing empirical research on transparency illusion and the Pygmalion effect, this article offers three practical applications to enhance employee sincerity through transparency: (a) managers should expect their employees to egocentrically represent the perspective of other people’s knowledge of the subject matter; (b) managers should expect employees to perceive the situation in the same way as they do; and (c) managers should expect their employees to set work-relevant self-esteem and personal standards on the basis of managerial and social feedback. This article contends that meeting these three conditions enhances employee sincerity.