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Definition: Self-Efficacy is a term and theory originally proposed by psychologist Bandura. According to Bandura (1977), self-efficacy is the belief that people have in their own abilities to execute behaviors necessary to produce designated levels of performance. In other words, it is a personal judgment of "how well one can execute courses of action required to deal with prospective situations". Self efficacy is linked to an employee's belief in his or her own capacity to produce specific performance attainments.
For example the amount of energy an employee exerts in order to achieve a goal or a work-related task influences the likelihood of an employee's potential to achieve it.