Over the last several years, the conventional view of self-efficacy as a positive influence on performance has been called into question. Researchers have identified a negative relationship between self-efficacy and performance when examined via within-person analyses, even in the presence of large positive between-person relationships. The current study proposes that the within-person relationship between self-efficacy and subsequent performance is moderated by one's degree of prior success or failure. Using a multitrial task, support was found for the proposed model. Following poor or substandard performances, self-efficacy was positively related to subsequent performance. However, following more successful prior performances, self-efficacy was negatively related to subsequent performance. Implications of these findings for theory and research on work motivation are discussed.