Leader-member exchange (LMX) theory states that "due to time pressure, leaders establish a special relationship with a small group of their followers [the in -group and the]… other followers fall into the outgroup” (Robbins and Judge, 2009, p. 398-399). The group receives benefits, rewards and attention from the leader; the outgroup receives few of these elements ( Gerstner & Day, 1997).Theorists believe that the categorization of followers can be based on a combination of three factors. First, the follower's personal compatibility with the leader. For example, the leader and the follower belong to the same ethnicity or gender. Second, the follower's level of competence perceived by the leader. And finally, the similarities of the follower's personality with that of the leader (Robbins and Judge, 2009 reflects all the elements of LMX theory). Due to training time constraints, my manager paid more attention to the "A" team based on the belief that the team had a higher level of competence. Therefore, the “A” team was seen as the in-group and, based on the principle of self-fulfilling prophecy; performed better than the "B" team of the external group (Gerstner and Day,