I've seen some other coverage of this recently and had soem discussions with co-workers because we're seeing this with entry-level employees. Check this one out:

http://www.usatoday.com/life/lifestyle/2005-02-15-self-esteem_x.htm

This over-emphasis on building self-esteem is still going on in the public schools that we are exposed to. It seems to be especially emphasized with minority students -- a recipe for disaster, in my opinion.

An oldie but a goodie: "The road to hell is paved with good intentions."

Let me tell you, I've wwrapped myself around an axle trying to explain to a few younger employees why they're not making the cut and I've seen young people get fired and have no clue why.

This isn't an issue, imho, of self-esteem but on the over-emphaiss of grades, where learning is less important than a good mark. A child who really has good self-esteem feels good about themselves whetehr or not the receive a high mark, wantts to do the best they can in any given situation, and finding themselves not doing well in a given area, will, if they decide it is necessary for their growth, exhert themselves to aquire the information. They will seek out help, either from the teacher or another, try and find different ways of attacking the subject etc. etc. What they will not do is beat themselves up over the lack of knowledge. It is a matter of persistence, not insistence. They will focus less on blame (of either themselves or another) and more on finding a solution or accepting the situation.