Systematic observations and ratings by self and others were part of an ethnographic approach to studying the self-concept of 48 severely to mildly mentally retarded adults in a sheltered workshop setting. Ss completed both the Self-Esteem Inventory for Adults and "The Way I Feel About Myself" Self-Concept Scale. Rehabilitation counselors completed behavior rating forms, and Ss were observed during work performance and social interactions. Factor analysis and ethnographic observations identified four groups: elite (who have positive self-concept and maintenance of self-esteem through social conformity); socialites (who frequently use self-aggrandizement to present a highly positive self, which is unstable and vulnerable); loners (who have accurate and balanced self-concept sustained through self-esteem maintenance strategies based largely on independent judgment); and nonconformers (who are unhappy and lonely, with negative self-concepts and ineffective esteem-building strategies). However, self-report and staff ratings were only weakly related to observed behavior. Results further revealed that the domains represented in self-report and staff rating measures did not reflect Ss' major concerns. (CL)