The evidence is real and the argument about it is still running: how strong it is, how far it travels, or whether it repeats. Trust the direction, and hold the numbers loosely.
Researchers told elementary school teachers that a test had identified certain students as about to bloom intellectually, poised for a big leap in the coming year. In truth, those students had been picked purely at random, no test had singled them out. Then the researchers waited. By the end of the year, the randomly chosen bloomers had, on average, actually gained more in measured ability than their classmates. The teachers' belief had quietly shaped reality: they gave those students more attention, more challenging material, more warmth and patience, more chances to answer, and the students rose to meet it. The study became famous as the Pygmalion effect, expectations becoming self-fulfilling. It is also one of the most criticized studies in psychology, and later work finds the effect real but considerably smaller and dependent on conditions, so treat the mechanism as sound and the dramatic original numbers with caution.
What you expect of a person quietly changes how you treat them, and how you treat them shapes what they become, so your expectations can partly create the outcome you were only predicting. Expect little from someone and you may unconsciously give them less to work with, then read their smaller results as confirmation you were right. This is worth watching in how you manage and hire: a candidate or a new team member you have privately written off will get less of you, which makes them more likely to fail. The effect is real, though smaller than the famous story claims, and it runs in both directions, which means your low expectations are never neutral.
The halo effect says one strong quality in a person lifts your rating of everything else about them, on no evidence beyond that quality. The Pygmalion effect says what you expect of a person changes how you treat them, and how you treat them changes what they become. They start from the same first impression and end in different places. Halo corrupts the score while the person stays the same. Pygmalion moves the person while the score stays honest. A manager who believes in someone gets both at once and cannot tell which one they are watching. The test is whether the outcome moved or only the rating did, and the only way to know is to have written the rating down before the outcome arrived.
Confirmation bias says that once you have a theory about someone, you ask the questions that will confirm it, and the answers you manufacture feel like evidence. The Pygmalion effect says that once you have an expectation of someone, you give them more or less to work with, and the result you produce feels like a prediction coming true. Both begin with a private guess about a person. One rigs the evidence. The other rigs the outcome. Confirmation bias ends in an interview that was a mirror of your opening impression. Pygmalion ends in a team member who failed partly because you had already written them off. In both cases the guess was never neutral, and the fix is the same: decide in advance what would prove you wrong, and go looking for it.
Source: Rosenthal and Jacobson, 1968. Heavily critiqued; later work finds a real but smaller, condition-dependent effect.
Carol Dweck, 2006
On how beliefs about ability shape what ability becomes. The effects it describes are real but considerably smaller in later meta-analysis than the book suggests, which is worth holding while reading it.
Draw your own card. It does not take long, and it rewards taking your time.