The study was concerned with the formation of grouPs of students and specifically addressed the problem: Can a computerized Procedure be developed which assigns students to instructional groups, which maximizes the homogeneity of these groups when this homogeneity is based on relevent student learning characteristics, and which takes account of realistic administrative constraints? The mathematical procedure developed involved utilizing computer technology in its implementation. It aimed to facilitate, in part, the management of Individually Guided Education (IGE). Four algorithms were designed, each involving the fitting of a homogenizing procedure within the framework of the administrative constraints of the problem. The algorithm which proved to be most effective was the one which initially assigned students to groups, matched group sizes with skills, allocated eligible students to these groups to maximize their homogeneity and then applied other administrative constraints. The effectiveness of this algorithm was further assessed by comparing its recommended groupings with teacher generated groupings when both were subject to the same constraints. The computerized procedure produced more homogenous groups than did the teachers and an equivalent number of students were omitted. User perceptions of the efficiency and effectiveness of the procedure were also obtained. It is claimed that the procedure developed warrants further evaluation. (RC)