PurposeThe purpose of this article is to develop a conceptual model predicting the influence of biased causal explanations for subordinate behaviors and outcomes on a leader's functionality and the quality of leader‐member relationships.Design/methodology/approachAttribution theory is used to analyze the effect of leader perceptions and emotions on the functionality of leader‐member relationships. It is predicted that the negative emotions and expectancies stemming from biased leader attributions will promote dysfunctional leader behaviors. These dysfunctional behaviors, in turn, are believed to reduce the quality of leader‐member relationships.Research limitations/implicationsAlthough much of the proposed model is based on empirical evidence, it is acknowledged that some key relationships have not been tested directly in past research. It is suggested that future research can seek to validate these aspects of the model. It is also suggested that future research explore the role of subordinate, as well as leader, attributions in dysfunctional relationships.Practical implicationsSeveral implications of the model for promoting functional leadership in organizations are described. The importance of leaders being aware of their attributional biases is indicated and information provided on how to assess one's attribution style. Also discussed are implications for reducing situational ambiguity and increasing causal feedback in the workplace.Originality/valueThis paper builds on past attribution theory research to address a shortage of research on the cognitive, interpersonal aspects of functional and dysfunctional leadership.