There is a "golem" in almost all workplaces, schools and organizations. This does not mean that you have to worry about huge clay monsters chasing you down your school hallway or on your office premises. By saying that there is a "golem" in the organizational structure or in the schools, we are actually referring to the Golem effect and the relation of expectations with the performance of an individual. Be it in schools, colleges, small or big organizations, examples of the Golem effect can be seen everywhere. Related to the well-known Pygmalion effect, which states that high expectations yield high results, the Golem effect designates the opposite of this, where negative or low expectation is believed to yield low performance. The expectation in this case work as self-fulfilling prophecy that can lead to negative results. So if boss expects poor performance from an employee, can it contribute to negative results? Or, when a teacher brands a student as a failure, does it materialize in real life as well? There have been many studies to find out the validity of this theory. The impact of the Golem effect is significant and can range from poor performance in educational system, organizations and the sports field to the offices and workplaces of multimillion dollar industries. In Educational Settings: The Golem effect was observed in ability tracking system in public schools where students were placed in the Advanced, Honors and Regular programs. Apart from the students in the Advanced programs, others experienced negative teacher bias due to the stigma attached to being an Honors or Regular student. This in turn led to a negative impact on their scores. In Organizations: The Golem effect in organizations and typical manager and employee relationship can be easily observed. Once the manager has decided on the low and high performers, he or she would stick to the notion despite the employee's best efforts. This in turn pulls the person down the performance grid. To counter its effects, managers or teachers need to communicate positive and optimistic feelings towards their employees or students. This is the key to motivating and increasing the efficacy of an individual. Other than this, an individual needs to motivate himself by enjoying the task he or she does. Rather than seeking extrinsic motivation in the form of praise or a pay raise, the person should seek achievement and power. This would lead to better performance, and soon the golem demon can be exorcised by the people who have been labeled "poor performers."