Using a sample of 246 working adults, the authors created a 2 x 2 x 2 experimental design to isolate the influence of performance outcome, source of handicapping, and frequency of handicapping on reactions to handicapping in organizations. Dependent measures were observers' allocations of credit/blame, interpersonal affect, and the perceived credibility of the explanation. Results showed direct effects on observer impressions for all 3 independent variables, along with a significant Source x Frequency interaction. Handicapping information presented by others yielded more favorable observer impressions than did self-handicapping, and frequent handicapping decreased observer impressions. The least credible handicapping strategy was multiple self-handicaps. A significant 3-way interaction showed that source and frequency affected perceived credibility differently, depending upon whether actual performance was a success or a failure.