THIS STUDY, CONDUCTED OVER A ONE-YEAR PERIOD, WAS FUNDED BY A GRANT FROM THE U.S. DEPARTMENT OF LABOR. THE PURPOSE OF THE STUDY WAS TO DEFINE AND ASSESS THE EFFECT OF PARTICIPATORY MANAGEMENT IN PENOLOGY. A THOROUGH LITERATURE REVIEW ON THE SUBJECTS OF PARTICIPATORY MANAGEMENT AND INMATE SELF-GOVERNMENT WAS CONDUCTED IN AN EFFORT TO SEE WHAT HAS BEEN TRIED IN THE PAST, THE FORMS PARTICIPATION HAS TAKEN IN PENAL INSTITUTIONS, AND TO DISCERN WHICH CASES OR WHAT TYPES BEST ACHIEVE THE GOALS OF PARTICIPATORY MANAGEMENT. BASED ON THE REVIEW, A TYPOLOGY OF INSTITUTIONAL MANAGEMENT WAS DEVELOPED. IN INCREASING ORDER OF INMAGE PATICIPATION, THESE MANAGEMENT TYPES ARE LABELED TOKEN, QUASI-GOVERNMENTAL, GOVERNMENTAL, AND FULL PATICIPATION. CHARACTERISTICS OF THESE MODELS ARE DELINEATED, AND IT IS NOTED THAT IN GENERAL, ATTEMPTS AT INMATE SELF-GOVERNMENT HAVE FAILED TO INVOLVE INMATES TO ANY GREAT EXTENT. THE SURVEY OF 148 ADULT STATE PRISONS AND ALL 24 ADULT FEDERAL INSTITUTIONS GAINED DATA ON THE PRISON CHARACTERISTICS, FORMATION OF INMATE COUNCILS, REASONS FOR THE COUNCILS, STRUCTURE OF THE COUNCILS AND FUNCTIONS OF INMATE COUNCILS. THESE RESULTS SHOWED THAT THE MAIN FUNCTIONS ARE TO ACT AS AN ADVISORY BODY, TO MAKE RECOMMENDATIONS TO THE SUPERINTENDENT, AND TO ACT AS A COMMUNICATION LIAISON. FEW COUNCILS HAD TRUE DECISIONMAKING POWERS. (AUTHOR ABSTRACT MODIFIED)....DMC