Mainly there are three theories of group development or group formation. They are given below with a brief description:
1. Interaction theory.
2. Balance theory.
3. Exchange theory.
1. Interaction theory: The main theme of interaction theory is that under this theory the group is formed by those members who interact with each other face to face. The members of this group may not be the same level of employees in the organization. But such types of group are formed on the basis of interaction. In this theory, more the cooperation among the group is developed the group become more successful. Such as the group formed with the general manager, production manager, supervisor, foreman and employees of different department are the example of interaction theory.
2. Balance theory: The main theme of balance theory is that the group under this theory is formed by those members who are homogeneous and have common set of characteristics. In this theory group is developed on the basis of homogeneity of the group members. Such as the group formed with the production manager, purchasing manager, selling manager and other departmental manager is the example of balance theory.
3. Exchange theory: The main theme of exchange theory is that under this theory the group is formed by those members who exchange their views and opinions or something among them. In this theory group is developed on the basis of rewards, cost and outcome, but the outcome must exceeds the cost of the group. It is some what similar to the interaction theory. Such as the group formed with the people who exchange their views is the example of this theory.
At last we can say that above are the main theories of group formation which are very important for group development.