This study examines the type of relationship that exists between the sales manager and subordinate (vertical exchange status), and its impact on the sales manager's attributions about the subordinate performance, as well as subsequent responses to the subordinate. Results indicate that cadres may receive preferential consideration in explaining their performance, which then impacts the sales manager's response to the salesperson. The findings imply that sales managers should be careful in assigning attributions for performance by both cadre and hired hand salespersons.