Racial Formation Theory was formed by Michael Omi and Howard Winant, and defines a race as something understood by the general population as a collection of social, economic, and political forces or ideas. The book begins by simply deconstructing the definition of race as we know it today. Originally, race was simply an ethnic origin. However, with that ethnic background comes a culture, and therefore your physical appearance becomes associated with the social, economic, and political habits of that culture or subculture.
Race is constantly described throughout the work as something that is not concrete - rather a fluid definition that is based on the continuity or halt of small or large scale societal relations. In this context, the "micro" level relations described in the book are those that we carry out with our fellow peers, while the "macro" level relations are those in society as a whole.
Racial discrimination was formed, in Omi and Winant's mind, as a way of distinguishing and controlling other races. Because race is outwardly obvious, it can limit freedoms in society without deep research into that person, prohibit economic gain, and glue someone to a step of the social ladder.
Overall, the book describes race a complex inner-working of relationships driven by a system of political struggle, in which certain groups discriminate against one another for their own political and/or economic advantage.