1. There are so many theories give explanations for group formation. Those are “Homan’s Theory, Balance theory, exchange theory and Tuckman’s stages of group development.”
1) Homan’s Theory (Classic theory of group formation).
Homan’s Theory is developed by George Homans who is an American sociologist.
This theory is based on three aspects. Those are “activities, interaction and sentiments.” This three elements straightly depend one to another.
2) Balance Theory.
This theory was introduced by “Thoedore Newcomb”. All the members in this groups we can clearly see they have some homogenous attitudes, such as, culture, work life balance and politics.
3) Exchange Theory.
Exchange theory has founded by “John W Thibaut and Harold H Kelly.The main aim in this theory is group members who can share their perceptions and opinions with their collegues. This theory is formed by reward, cost and outcome.
4) Tuckman’s stages of group development.
This theory propounded by Bruce Wayne Tuckman in 1965.There is five stages in this theory. “Forming stage, Storming, Norming, Performing and last one is adjourning respectively. “This Model explained the challenges of team building and developing.

The most relevant and influential theory is Tuckman’s stages of group development. Because it covers widest part in group formation and clearly describes each phases.
• Forming stage
This stage has no leader therefore, it will critical to lead and guide to team members to achieve the common goals. High percentage of uncertainty. No group structure. Lack of communication process.
• Storming stage
This is the second element in the group development process. Individual try to express their ideas for accomplish the set of goals and objectives. In this stage arise conflicts, disagreements within the group members.
• Norming stage
This stage all the conflicts are settle down and among the group members start to understanding, collaboration, accept and cooperation in each other. The members are working together as a result increasing the confidence and trust, appreciating others, prepare plans to achieve common goals and measure the progress.
• Performing stage
After the norming group members are comfortable with each other. High degree of team synergy. Members are more agile, clear focused, rarely disagreements occur but team members are resolved in positive manner. Leader is doing a major role in this stage like delegation of authority and tasks among the team members.
• Adjourning stage
This is the final stage in group development. Group members are much closed. They try to expand their groups as well.

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2. Self-managed teams – this team have more authority to make decisions. Each team member has specific skills to complete the task or project. Team members have a feeling of an ownership their jobs.
There are so many ways to make and maintain self-managed team effectiveness.
1. Give more authority to make decisions.
This will help to team members can work independently. Team members are empowered they have ability to take some certain decisions without any approval from their respective management. When team members are feel they are part of the organization and they will contribute their critical and creative capabilities to face uncertain situations. It will give lots of benefits to the organization. Those are improving accountability, therefore within the members beginning trust and confidence. Others are job satisfaction and minimize time because of the faster problem resolution. Team members are more loyal to the organization and add value. He or she work hard and find new opportunities behalf of the organization and promoted by themselves.

2. Provide direction.
As a leader he or she has a responsible to show a proper direction to their members. Then members can realize their organizational goals and objectives and they will contribute their efforts and worth to achieve it. Improve the quality of the product or service, more flexible, minimize and eliminate the unnecessary costs and more efficient. The members have a feeling about the ownership then increase the motivation and lower absenteeism.