According to Tuckman, group formation takes place in following stages:

(i) Forming Stage: When group-members first meet, there is a great deal of uncertainty about the group, the goal, and how it is to be achieved.

(ii) Storming: There is a stage of intergroup conflict. There is conflict among members about how the target of the group is to be achieved, who is to control the group and its resources, and who is to perform what task.

(iii) Norming: Group-members by this time develop norms related to group behaviour. This leads to development of a positive group identity.

(iv) Performing: At this stage, the structure of the group has evolved and is accepted by group-members. The group moves towards achieving the group goal.

(v) Adjourning Stage: In this stage, once the function is over or goal is achieved, the group may be disbanded.

These stages help in group formation. Which occurs on the basis of following factors:

(i) Proximity: Individuals with similar background, living in the same complex (e.g., going to the same school) may form groups on the basis of proximity.

(ii) Similarity: It has been observed that more the similarity in the attitudes, interest, beliefs and value system of two persons, greater the likelihood that they would form a group.

(iii) Common Motives and Goals: When a number of people have common objectives or goals, they tend to get together and form a group.