An introduction by Dr. David D. Komisar provides background and objectives for a study which eventually involved observations in six residential institutions. Two institutions were judged to be ineffective as residents appeared to be not happy or self-sufficient, showed little intellectual growth (or were rarely, if ever, retested), had many stereotyped behaviors, and manifested excessive needs for social reinforcement. One institution emerged as clearly effective and one as moderately so. In five of six institutions, other ward residents were the greatest source of interpersonal contacts; in only one institution did attendants and other nonretarded adults interact as frequently with residents. Between one third and one half of the time of severely retarded residents of the typical institution was spent in doing nothing. The attitudes of attendants at the different institutions showed remarkable consistency. While verbal and psychological attitudes of parents did not differentiate between effective and ineffective institutions, parents of children in an effective residence visited children more frequently. Additional research results and implications are presented, and schedules of a typical day at each institution are included. (RJ)