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The purpose of this paper is to collate a theoretical background for the action learning model of management education. The paper relates the learning processes that occur in the action learning model to the basic concepts of group dynamics proposed by Bion. Many writers consider that management education should be active and experienced-based, problemoriented, continuous, supportive, and modified by feedback. Students should have a high level of motivation. The action learning model meets all these criteria. In addition, it has the ability to harness unconscious forces that can be generated in group work if the group is properlyformed and led. Bion identified these forces as the proto-mental system, which derives from the potential valency of each member of the group. The interchange of new learning experiences between the members of the group has been likened to symbiosis by Revans. The potential valency of each member of the group-and hence the symbiotic effect-can be reinforced by the group leader or set adviser and this is a distinctive characteristic of the action learning model.