Theories of Group Formation - Explained
What are Theories of Group Formation?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
Table of ContentsTheories for Group FormationWhat is Propinquity Theory? What is Homan's Interaction Theory? What is Balance Theory? What is Exchange Theory?
Theories for Group Formation
Various theories exist concerning the reason that informal groups arise. Several common theories are discussed below.
Back to: Business Management
What is Propinquity Theory?
This theory says that individuals form informal social groups based upon their physical proximity or closeness to other group members.
What is Homan's Interaction Theory?
This theory says that informal groups arise as a result of individual interaction, common activities, and personal sentiments that attach as a result of pursuant to a common group goal.
What is Balance Theory?
This theory says that individuals associated based upon similarities or commonalities in how they address similar objectives or goals. If these common characteristics disappear, the group is generally dissolved.
What is Exchange Theory?
This theory says that individuals associated based upon perceived cost-benefit (reward). That is individuals receive some benefits from association (such as personal satisfaction or gratification). The drive to be in this group is measured against the cost associated with affiliation (such as effort, anxiety, embarrassment, discomfort, etc.).