Lexeme-based morphology

Lexeme-based morphology is (usually) an Item-and-Process approach. Instead of analyzing a word-form as a set of morphemes arranged in sequence, a word-form is said to be the result of applying rules that alter a word-form or stem in order to produce a new one. An inflectional rule takes a stem, changes it as is required by the rule, and outputs a word-form; a derivational rule takes a stem, changes it as per its own requirements, and outputs a derived stem; a compounding rule takes word-forms, and similarly outputs a compound stem.