EIGHTEEN PRIVATELY OWNED GROUP HOMES FOR TEENAGERS, OPERATING UNDER THE SUPERVISION OF THE NEW JERSEY DIVISION OF YOUTH AND FAMILY SERVICES (DYFS), WERE STUDIED REGARDING THEIR OPERATING PROCEDURES AND POLICIES. THE DIRECTORS OF 15 OF THESE HOMES WERE INTERVIEWED. TWO DIRECTORS OF LARGER RESIDENTIAL HOMES FOR MORE SERIOUSLY MALADJUSTED YOUTH WERE ALSO QUESTIONED. COMMON PROBLEMS ARE COMPLICATIONS IN REFERRAL AND PLACEMENT PROCEDURE, INSUFFICIENT FINANCIAL REIMBURSEMENT, INADEQUATE TRAINING AND UTILIZATION OF STAFF, AND A MISUNDERSTANDING OF GROUP WORK. DIRECTORS REPORTED THAT BECAUSE CHILDREN ARE OFTEN BEHIND IN THEIR EDUCATIONAL LEVEL, THE HOMES HAVE TO SUPPLEMENT THE WORK OF SCHOOLS. THERE IS ALSO A VAGUENESS IN POLICIES AND PROCEDURES GOVERNING TERMINATION, BEHAVIOR MANAGEMENT, AND THE CREATION OF A SOCIAL MILIEU. ADMINISTRATIVE ASPECTS OF THE GROUP HOME SYSTEM ARE CONSIDERED. THE PROCESSES INVOLVED IN STARTING A GROUP HOME ARE OUTLINED ALONG WITH INTAKE PROCEDURES. STAFFING ROLES AND POLICIES ARE REVIEWED. IT IS SUGGESTED THAT GROUP HOMES BENEFIT FROM AN ATTACHMENT TO A PARENT AGENCY AND THAT CHILD CARE WORKER ROLES SUCCEED BEST WHEN DESIGNED TO FIT THE PARTICULAR HOME. THE EVERYDAY PROGRAMS AND POLICIES OF THE GROUP HOMES ARE DISCUSSED, INCLUDING BOTH STRUCTURED AND UNSTRUCTURED ACTIVITIES. AN EXAMINATION OF THE TREATMENT PROGRAMS REVIEWS EDUCATIONAL SERVICES, THERAPY SERVICES, THE CREATION OF A SOCIAL MILIEU FOR TREATMENT AND BEHAVIOR MANAGEMENT MEASURES. TERMINATION POLICY AND PRACTICES ARE ALSO EXAMINED.