Identity Status Theory, developed by James Marcia, categorizes the process of identity formation into four statuses: identity diffusion, identity foreclosure, identity moratorium, and identity achievement. These statuses reflect the degree of exploration and commitment an individual has regarding their personal beliefs, values, and goals. In this theory, individuals may either explore different options or commit to specific identities. Identity diffusion involves a lack of direction, while identity foreclosure occurs when someone commits without exploration. Identity moratorium represents a period of active exploration, and identity achievement signifies a well-defined sense of self after exploration.