The purpose of this research was to develop and provide initial validation evidence for the performance impact of a measure of an individual's perceived ability to learn and solve problems (PALS). Building on the self-efficacy literature and the importance of learning and problem solving, the fundamental premise of this research was that PALS would significantly explain employee performance. In addition to demonstrating that PALS represented a distinct construct, PALS was a significant predictor of performance for managerial and entry-level employees in two different organizational contexts. Moreover, PALS explained additional variance in performance beyond general mental ability, personality, and similar constructs related to learning and problem solving. (Contains 4 tables.)