Showing respect to your work superiors is good.
Steve was getting a dressing down by his boss for poor performance.
Steve wants his boss to stop criticizing him.
Steve tells his boss he completely understands, and will work hard to work better.
Steve tells his boss that he thinks he's incompetent too.
Steve's boss is satisfied with that response, and backs off criticizing him so much.
Steve's boss fires Steve for talking back to him so rudely.