CONCEPTS OF PEOPLE-CHANGING AND PEOPLE-PROCESSING WERE ANALYZED AND APPLIED TO CORRECTIONAL INSTITUTIONS. THESE CONCEPTS HAVE INTERACTING AND OFTEN REINFORCING IMPACTS ON THE PEOPLE WHO COMPRISE THE RAW MATERIAL OF PEOPLE-WORK ORGANIZATIONS. PEOPLE-CHANGING ORGANIZATIONS ARE THOSE WHICH BASICALLY TRY TO CHANGE THE BEHAVIORAL PATTERNS AND ATTITUDES OF PEOPLE ON WHOM THEY ARE WORKING, WHILE PEOPLE PROCESSING ORGANIZATIONS MAINLY CONFER NEW STATUS ON THEM. ALTHOUGH THE MANIFEST PURPOSE OF MOST CORRECTIONAL INSTITUTIONS IS PEOPLE-CHANGING (CHANGING MAINLY THE BEHAVIOR AND ATTITUDES OF CLIENTS), TO A GREAT EXTENT THEY FULFILL A LATENT FUNCTION OF PEOPLE-PROCESSING (CHANGING THE STATUS OF THE PEOPLE THEY WORK ON). IN THE CONTEXT OF CORRECTIONAL INSTITUTIONS, THE FACT THAT THE OFFICIALLY UNINTENDED FUNCTION OF PEOPLE-PROCESSING IS FULFULLED AND THE OFFENDERS BECOME CONVICTS, AND EX-CONVICTS WITH SERIOUS NEGATIVE SOCIAL CONSEQUENCES WHILE THE RESOCIALIZATION GOAL IS SELDOM REALIZED, COULD HAVE FAR-REACHING IMPLICATIONS FOR PEOPLE WORKING IN THE FIELD OF CORRECTIONS. REFERENCES ARE INCLUDED. (MJW)