In this field study, black and white naval recruits and squad leaders in groups of varying size and racial composition performed two problem-solving tasks (knot-tying and ship-routing). Black and white leaders, subordinates and group composition (25% black tetrads, 75% black tetrads, racially balanced dyads and tetrads) were compared in measures of self-esteem, duration of speech, locus of control, job and general satisfaction, Bales IPA behavior, and performance on the tasks. Leader, group, and interaction effects were found between leaders and group types. For the know-tying task, groups supervised by black leaders displayed less agreeing, less asking for information, less asking for opinion, and more antagonism than white supervised groups. For the ship-routing task, groups supervised by black leaders displayed less asking for opinion but more asking for information and duration of speech than white supervised groups. No differences were found between black and white leaders in consideration and initiating structure as perceived by leaders and their subordiantes. As expected, white subordinates preferred white leaders while black subordinates under black leaders identified their leader as best. Although black leaders expressed higher aspirations, expectancy of success was lower for blacks than whites. Few differences were found in role performance among the leaders. (Author)