Stanton and Schwartz point out the inadequacy of available guidance and proper criteria for the administrative psychiatrist in carrying out the particular type of work demanded of him in running a mental institution or ward. The problems encountered in the rendering of opinions and decisions by such psychiatrists are analyzed in relation to two social science concepts—'stereotypes' and Malinowski's 'functional theory of culture'. The hospital administrator generally harbors within himself a distorted stereotype of the hospital as an ideal haven built around the needs of the patient. Psychiatric reasons are used as rationalizations for decisions which are actually based on an allegiance to this stereotype. Similarly, many procedures are performed for the function of fulfilling certain 'needs' of the hospital, as the need for safety, and are couched in other terms which make them seem for the benefit of the particular patient. Psychiatric theory and diagnosis may thus be misused and may be quoted to any purpose. It must be enlarged to include and accurately integrate the institutional setting.