Analysis of racism has shifted in focus over the years from concentration on individual/interpersonal processes to considerations of organizational variables that maintain racist outcomes. The concept of organizational or institutional racism refers to processes, behaviors, policies, or procedures that covertly sanction unequal access to goods and services and produce negative outcomes for nonwhites (as compared to outcomes for whites). Institutional racism may be analyzed within a framework that identifies competent communities as those that provide informal support systems for members, are highly cohesive, and encourage diversity. Under the community competence model, institutional racism is defined as the differential provision of employment, housing, education, health/mental health serivces, and other social services to minority versus nonminority members. This model suggests that promoting community competence depends on interaction between individual and system factors through: (1) information exchange between individuals and systems; (2) matching of minority problem solving styles with solutions available in the larger social system; and (3) recognition of diversity in minority communities. (MJL)