The document discusses two types of word formation: inflectional and derivational paradigms. It focuses on inflectional paradigms, which are sets of related words that share the same stem but differ in inflectional affixes. There are four types of inflectional paradigms discussed: noun, pronoun, verb, and comparable paradigms. Noun paradigms add inflectional affixes like -s, -'s, and -s' to change number or possession. Pronoun paradigms have fixed forms that are classified by grammatical properties like subject, object, and possession.