This document summarizes the development of Shenglong Electric Group, a Chinese private enterprise established in 1979. It discusses how Shenglong has grown steadily over 40 years by adhering to high-quality development, innovation-driven growth, and cultivating a culture of shared success between employees and the enterprise. Key to Shenglong's success has been its focus on manufacturing quality electrical products while also serving as an incubator and platform to support entrepreneurship.

1. CHAPTER 8
MANAGING
GROUPS and TEAMS

2. MANAGING
GROUPS and TEAMS
 ROMEL Q. NEBAB
 MA. CECILIA B. PEREGINA
 ZHANG NU

3. MANAGING
GROUPS

4. Group
 Group – two or more
individuals, interacting
and interdependent, who
have come together to
achieve particular
objectives.

5. Groups - Formation
 Stages of Group
Development
 Forming
 Storming
 Norming
 Performing
 Adjourning

6. Influence of Groups
 The presence of others strongly influences
individual behavior.
 Conversely, the behavior of individuals is
affected by being part of a group.
 Business requires groups, therefore how groups
work influences how individuals behave and
work.

7. Influence of Groups
 Patterns of Behavior in
Groups
 Social Striving
 Social Loafing
 Social Facilitation
 De-individuation

8. Influence of Groups
 Social Striving
 People work harder
when they are in
groups, then when
they are alone.

9. Influence of Groups
 Social Loafing
 People tend to expend
less effort on group tasks
then when performing the
same task alone.

10. Influence of Groups
 Social Facilitation
 The presence of
others can enhance
an individual’s
performance for
simple or well
rehearsed tasks.

11. Influence of Groups
 De-individuation
 This pattern happens when
you have the increased
desire to please
management with the
diffusion of responsibility
from social loafing.

12. MANAGING
TEAMS

13. Differences between Groups and Teams
 Work Group
 A group that interacts primarily to share information and to make decisions
to help each group member perform within his or her area of responsibility
 No joint effort required
 Work Team
 Generates positive synergy through coordinated effort. The individual efforts
result in a performance that is greater than the sum of the individual inputs

14. Why Have Teams Become So Popular?
 Great way to use employee talents
 Teams are more flexible and responsive to changes in the
environment
 Can quickly assemble, deploy, refocus, and disband
 Facilitate employee involvement
 Increase employee participation in decision making
 Democratize an organization and increase motivation
 Note: teams are not ALWAYS effective

15. Types of Teams
 Problem-Solving Teams
 Groups of 5 to 12 employees from the same
department who meet for a few hours each
week to discuss ways of improving quality,
efficiency, and the work environment
 Self-Managed Work Teams
 Groups of 10 to 15 people who take on the
responsibilities of their former supervisors

16. More Types of Teams
 Cross-Functional Teams
 Employees from about the same hierarchical level, but from different work
areas, who come together to accomplish a task
 Very common
 Task forces
 Committees

17. MANAGING TEAMS:
Pros and Cons

18. The Pros
 A proven system of diverse thinking and behavioral
elements that contribute to a broad-based
perspective – A WEteam approach in Emergenetics
 Greater possibility for shared and aligned goals and
objectives
 Higher degree of collaboration and communication

19. The Pros
 Stronger team dynamics as a whole throughout the
organization
 Ability to relate to diverse audiences as managers –
This is one of the key points of the Fast Company
article, in having a team that can relate across
generations (Gen X, Gen Y, Boomers, Millennials)
 Boundless innovation stemming from a holistic
viewpoint on creativity and results – This is the crux
of the Blogging Innovation article

20. The Cons
 Analysis paralysis – With so many perspectives, there
can be a delay in coming to the best idea quickly
 Need for ultimate consensus – The Blogging Innovation
article cautions against this, stating: “As odd as it may
sound, one of the greatest impediments to building
productive teams is practicing management by
consensus.”
 Watered down solutions – With a team management
approach, each person is coming from their own point of
view, and the overall solution could get unnecessarily
filtered to be everything to everyone

21. The Cons
 Teams that are too agreeable – Teams can often
follow the personality and approach of the top
dogs…in this case you just get a bunch of Yes-Men
and Yes-Women
 Lack of productivity – Sometimes 5 heads aren’t
better than 1…particularly when it slows down
ideas and devolves into self-congratulatory back-
patting amongst the leadership team

22. (Other Supporting studies on why working
in a team is (not) always beneficial)
 The South African Schools Act 84 of 1996 requires school governing
bodies (SGBs) to take responsibility for the management of school
finances. However, research in this field the study revealed that
many SGB members lack the necessary knowledge and financial
skills to effectively and efficiently manage schools’ finances. This has
resulted in more financial responsibilities assigned to principals, who
in turn solicit the assistance of other members of school
management teams (SMTs), which include heads of departments
(HoDs) and deputy principals. Given that principals and SGBs
grapple with the demands of managing financial resources
effectively, this study explores the necessity for SMTs to collaborate
with principals and SGBs (Basson, P., & Mestry, R. (2019).

23. (Other Supporting studies on why working
in a team is (not) always beneficial)
 The results have shown that communication is the most challenging
issue for performing everyday tasks in multicultural teams. Having a
leader with the right skills helps to bring forward the best
performance out of a diverse team. Nevertheless, having people
with cultural awareness, open-mindedness, and willingness to
accept differences is a must for working in an environment outside
of their comfort zone. To lead a multicultural team most effectively,
the team leader must treat each team member as an individual. The
culture is an important consideration, but more important is to
integrate the team member properly and to be willing to accept
differences (Senra-Nyman, L. (2020).

24. (Other Supporting studies on why working
in a team is (not) always beneficial)
 Results of the research highlighted the importance of leadership
team coherence and the establishment of trust. Additionally, it was
found that the context of the school played an important role in
determining what aspects of leadership were most important for
team function. Considering the elements of leadership team
coherence and the importance of trust and context, the results of
the study offer implications for current senior high leadership
teams and make further recommendations for ongoing research
surrounding effective actions of leadership teams (van der Meer,
K. (2022).

25. MANAGING GROUPS:
Pros and Cons

26. Defining and Classifying Groups
 Group:
 Two or more individuals interacting and interdependent, who
have come together to achieve particular objectives
 Formal Group:
 Defined by the organization’s structure with designated work
assignments establishing tasks
 Informal Group:
 Alliances that are neither formally structured nor organizationally
determined
 Appear naturally in response to the need for social contact
 Deeply affect behavior and performance
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27. Subclassifications of Groups
Formal Groups
 Command Group
 A group composed of the
individuals who report directly to
a given manager
 Task Group
 Those working together to
complete a job or task in an
organization but not limited by
hierarchical boundaries
Informal Groups
 Interest Group
 Members work together to attain
a specific objective with which
each is concerned
 Friendship Group
 Those brought together because
they share one or more common
characteristics
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28. Example of case
 Shenglong Electric The " " not
only enhances the cohesion of Shenglong employees,
promotes the rapid growth of the enterprise, but also
produces a huge magnet effect.
9-28

29.  From the perspective of time depth and space extension, Shenglong
electric group is a unique existence that best fits the development
context of China's reform and opening up in the past 40 years.
 On May 13, 1979, Xie Yuande, 29, together with six other young
people, put up the sign of Hubei's first rural joint venture in a simple
hut in Wangcheng Town, Zaoyang County, Hubei Province. At this
time, Xiaogang Village in Fengyang, Anhui Province has not been
officially recognized as a "household production quota" and
Shenzhen has been identified as a "special economic zone" half a year
later. Without exception, individual enterprises that are still going
against the trend have been excluded and suppressed. When the local
bureau of industry and Commerce hurried to close the door, it was
discovered that this was an enterprise without even a door.
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30.  Perhaps no one thought that this tenacious enterprise would become a
unique sample of China's private economy in the future and open a
wonderful door for the development of Chinese enterprises.
 Now, taking stock of the star enterprises that emerged at the beginning of
reform and opening up, we will find with regret that few of them are still
developing healthily and continuously. This also makes the significance of
Shenglong's sample more precious.
 As a rising star in China's electrical manufacturing industry, Shenglong
Electric Group has achieved remarkable development momentum in recent
years. In the general environment of increasing downward pressure on the
economy and slowing down the growth rate, Shenglong still maintained a
strong development momentum, and the response of domestic and foreign
markets was very optimistic. In 2017 alone, Shenglong won orders of up to
75.6 billion yuan at an electric smart power Expo held in Wuhan.
9-30

31.  Break through and develop simultaneously, and grow tenaciously in sticking to
industry
 "Shenglong model itself is very simple, but its connotation is rich, and it is easy to
learn and difficult to do. The so-called" easy to learn "means that you can understand
it at a glance; the so-called" difficult to do "means that few entrepreneurs have the
mind, passion, dream and life realm of Xie Yuande. To play a role in this model, we
need to gradually cultivate a group culture, that is, the essence of Confucian culture -
'we want to stand up and stand up, and we want to reach and reach people.' this
culture and the market economy's impact on people The basic assumptions are
contrary. " It is a miracle that Shenglong can cultivate such a culture, implement it and
link it with its own business model.
 "The reason why we can continue to develop is that we have always adhered to the
real economy and firmly adhered to the green mountains; we have always adhered to
the high-quality development path, taken innovation as the first driving force, and
regarded quality as life; we have always adhered to the common growth of employees
and enterprises, and established and successfully practiced a group entrepreneur
system called 'group boss system'."
9-31

32.  Every step of Shenglong is precisely in line with the pace of reform and
opening up.
 In 1984, the excluded company moved from a small town to a county town.
Its business scope expanded from building materials to electrical switches
and took the lead in letting employees wear suits. Under the change in
clothing, there is a change in the system. Since then, Shenglong began to
abandon the big pot, establish the manager responsibility system, start
performance evaluation, and explore the group boss mode of "co
construction and sharing"
 It is reported that when the external environment for the development of
the real economy was not good in the past few years, many enterprises
chose to turn from reality to reality and switch to real estate, stocks and
futures, Shenglong electric was also faced with great temptation. Do you
want to change course to make fast money, or do you want to continue to
work hard in industry?
9-32

33.  "Running an enterprise is like planting crops. We must be down-to-
earth. We cannot play tricks or speculate. The real economy is the
foundation of a country's economy and the foundation of
Shenglong electric. We must stick to it and never waver." In order to
put an end to the idea of taking shortcuts, Xie Yuande publicly
announced that Shenglong electric would not circle the country's
land and the people's money at any time, "no one is allowed to step
on these two red lines".
9-33

34.  Not only that, in order to focus on the main business, Shenglong also
took the initiative to peel off the hardware processing, construction,
transportation and other industries, focusing on the electrical
manufacturing industry, especially the internet intelligent electrical
manufacturing industry that the country urgently needs to develop.
Persistence and deep cultivation will pay off. Shenglong Electric has
become a leading full chain supplier in China's intelligent power industry
and a giant ship in the internet intelligent power supply equipment
manufacturing industry. At present, Shenglong has 35 subsidiaries,
factories and 2 research institutes. Its business covers all provinces and
cities in China and more than 50 countries and regions overseas. It has not
only successfully participated in many national major projects such as the
Beijing Shanghai high-speed railway, the south to North Water Transfer
Project, the capital airport, but also become an equipment supplier for
overseas major projects such as the State Grid of Vietnam, the new port of
Sudan, and the Hambantota airport of Sri Lanka.
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35.  In the view of peers, the key to Shenglong's success is that it can
make more accurate pre change and response under the uncertain
market environment. This seems to be closely related to its unique
enterprise definition.
 Shenglong defines itself as an enterprise that manufactures high-
quality products, a platform for cultivating entrepreneurs, and an
ecosystem that supports mass entrepreneurship. Strictly speaking,
the latter two seem to go beyond the connotation of enterprises,
and more reflect the social responsibility and public welfare. In this
regard, Xu Honglan, vice mayor of Wuhan, once commented,
"Shenglong is an incubator and not just an incubator, a platform but
not just a platform, a factory but not just a factory, a school but not
just a school."
9-35

36.  In the view of peers, the key to Shenglong's success is that it can
make more accurate pre change and response under the uncertain
market environment. This seems to be closely related to its unique
enterprise definition.
 Shenglong defines itself as an enterprise that manufactures high-
quality products, a platform for cultivating entrepreneurs, and an
ecosystem that supports mass entrepreneurship. Strictly speaking,
the latter two seem to go beyond the connotation of enterprises,
and more reflect the social responsibility and public welfare. In this
regard, Xu Honglan, vice mayor of Wuhan, once commented,
"Shenglong is an incubator and not just an incubator, a platform but
not just a platform, a factory but not just a factory, a school but not
just a school."
9-36

37.  In order to achieve the dream of the first workshop, Shenglong has embarked on a
unique road. According to Gong Shengde, general manager of intelligent power
distribution division of Shenglong Electric Group Co., Ltd., Shenglong was initially
engaged in power distribution equipment related business. Before the reform and
opening up, China's power distribution business followed the Soviet Union
standard. After the reform and opening up, abb, Schneider, Siemens and other
international giants quickly occupied the Chinese market. Compared with
domestic distribution equipment, the products of foreign brands are lighter,
thinner and lower in energy consumption, with obvious advantages. But at the
same time, these brands are too large, and they are not grounded when they first
enter China, and there are certain limitations in service. Judging the situation,
Shenglong adopted the strategy of learning from international giants and
gradually became the authorized manufacturer of these big brands. More
importantly, aware of the weakness of foreign brands, Shenglong has made great
efforts to meet the different needs of customers and made differentiated designs
in the number of switches, circuits, centralized control and management of
products.
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38.  In this process, Shenglong always adheres to the road of
high-quality development, takes innovation as the first
driving force, and devotes great efforts to build a market-
oriented, enterprise oriented, and industry university
research deep integration technology innovation system. It
has carried out industry university research cooperation with
Tsinghua University, the Institute of electrical engineering of
the Chinese Academy of Sciences, and established an
intelligent power distribution research institute led by Gu
Guobiao, a famous electrical expert in China and
academician of the Chinese Academy of Engineering in
Beijing, And it does not stick to one pattern to attract high-
end talents at home and abroad.
9-38

39. The mode is original,
and the group boss
system is a powerful
driving force.
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40. 9-40
 "One of the core of Shenglong's model is the 'group boss system', that is, the
sales function of the enterprise is fully contracted to the employees of the
enterprise. However, this kind of contracting is not simply to be the
shopkeeper, but to provide all-round services for the sales personnel to
ensure the product quality, cost advantage and design scheme optimization.
The sales personnel are not only the soldiers in charge, but also the
commanders of the enterprise's product decisions. This model has greatly
stimulated sales The initiative of the staff has improved the speed, efficiency
and pertinence of sales decisions, which I call the best sales model. " Song
Xuebao analyzed that this actually makes every salesperson become a real
entrepreneur and the first person responsible for serving customers, makes
sales really the leader of the enterprise, and makes the enterprise truly
market-oriented.

41.  Specifically, the main approach of the "group boss system" is to create
an environment and build a platform for employees who are capable
and want to do things to help them grow into leading talents; Support
employees to become entrepreneurs through their own efforts,
participate in corporate governance and share development
achievements. In order to cultivate "bosses", Shenglong Electric has
established a three-level entrepreneurial company structure. When
entrepreneurs have their first bucket of gold and have their own 1
million yuan in the company account, they can apply for registration as
a manager of a three-level startup company. After the manager's
personal account reaches 3 million yuan, he can apply for the
establishment of a second level venture company and serve as the
general manager. After the personal account of the general manager
reaches 10 million yuan, he can apply for the establishment of a first-
class startup company and serve as the president.
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42.  In short, today's soldiers, tomorrow's generals and the day after
tomorrow's leading the three armed forces to fight a big battle are
the trilogy of the "group boss system". "Group boss system" not
only enhances the cohesion of employees, promotes the rapid
growth of enterprises, but also produces a huge magnet effect.
 Now, the "group boss system" has produced a "fission effect" in
Shenglong electric. After relay after relay, Shenglong Electric's
"boss" team is rolling like a snowball, getting bigger and bigger.
These more than 400 "bosses" and their teams, like more than 400
large and small engines, have provided strong and lasting impetus
for the development of Shenglong electric.
9-42

43. Pros
9-43

44. Cons
 1. First and foremost, it seems that the internal relations of this enterprise are all
maintained by money. We are in a head office (an entrepreneurial platform) because
it is profitable. But if one day, the company is in crisis and faces extinction, at this
time, small start-ups can not make profits from the head office. Can this relationship
maintained by money still exist? Only when the trees fall, the monkeys scatter. When
enough money is made, this incentive will no longer matter. There is also a habit
within Shenglong that the first generation boss supports the second generation.
When there is competition between the two, it may suppress the new generation.
This is still the reason why it depends on money. Only the strength of the team is
considered, and the cohesion of the group is ignored. If every boss is short-sighted
and only wants to make money, they will try their best to squeeze costs, buy inferior
raw materials, and the quality of products will become worse. (forming a vicious
circle) the company's purpose and values are very short-sighted, which are
abnormal and utilitarian values. So, what should be really used to maintain the
internal relations of the enterprise? I think it should be a kind of vision, a kind of
value and something similar to faith. This is also a very important content in today's
enterprise management. This is a kind of cohesion from the heart. It is a kind of
cohesion that can not be blown away.
9-44

45. Cons
 2. There are also some small problems: there is no room for young
people to develop. There is a certain period for the development of
an enterprise. When the enterprise is saturated in the market and its
market share has reached the extreme, the enterprise is still
continuously accepting new young people. The enterprise is
becoming more and more bloated and difficult to manage. The
young people have no room for development and can only expand
diversified businesses and markets. Then it comes to the next
technical issue.
 3. Technology research and development: technology has become
more and more important. The development of enterprises can not
rely solely on the expansion of scale. Competition is mainly driven by
technology. Enterprises should concentrate resources to do some
technological breakthroughs, overcome technological bottlenecks,
and carry out technological innovation, instead of focusing on sales.
9-45

46. Cons
 4. Filing system: vicious competition, the first to arrive does not necessarily mean
strong competitiveness and good technology, and the reaction time to the market
is later than that of other companies. At this time, the highly competitive team
may choose to work alone or wait for the next assessment. However, it is also
possible that the payback period of the investment is often long, and some
projects that have no income at present but have strong income development in
the future may be shot during the assessment.
 5. Employees have no basic salary and no sense of security. They have a sense of
crisis in the environment of this wolf heart culture. When employees reach a
certain age, they may be under great pressure in life and have no strong
enthusiasm. If the enterprise can not provide them with a series of guarantees at
this time, employees may not have a strong sense of collective belonging, which
will also affect their work efficiency.
 6. The incentive level of technical personnel is not enough, only for the sales
department, and all of them are developed to the sales department, resulting in
the loss of technical personnel. The recruitment of new technical personnel will
lead to a series of consequences such as increased training costs.
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47. Groups vs. Teams
 Groups
 Strong leader
 Individual accountability
 Organizational purpose
 Individual work products
 Efficient meetings
 Delegates work
 Random and varied skills
 Teams
 Shared leadership
 Individual and mutual
accountability
 Specific team purpose
 Collective work products
 Open-ended meetings
 Does real work together
 Complementary skills

48. Groups vs. Teams
 Group – interacts to share information
and make decisions to help each group
member perform his or her area of
responsibility.
 Team – a group whose individual
efforts result in a performance that is
greater than the sum of the individual
inputs

49. THANK YOU!
 ROMEL Q. NEBAB
 MA. CECILIA B. PEREGINA
 ZHANG NU