A manager from a prestigious university believed that employees who were from "lesser schools" lacked sufficient intelligence and motivation for the high-tech firm that she led. She set goals for these employees low, and did not trust them with certain important tasks or company information. Over time, the employees started to exhibit behaviors consistent with the manager's beliefs and actions. They tended to show dissatisfaction and low performance. At length, many of them quit. This would be an example of

The Pygmalion Effect  

Explanation:  

Pygmalion effect: In psychology, the term "Pygmalion effect" is also referred to as the "Rosenthal effect" and was proposed by Robert Rosenthal. It is defined as one of the psychological phenomena in which an individual's high expectation related to something gives rise to an improved performance in the area he or she is involved in.

In other words, it is described as a phenomenon in which an individual's expectations from another individual's behavior leads to create a "self-fulfilling prophecy.

In the question above, the given statement would be an example of the Pygmalion effect.

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