TABLE OF CONTENTS

Summary....................................................................................................................................................................
Discussion Questions.................................................................................................................................................
15-13. Do you think the work culture at Tencent is effective? Would it work in other organizations? Why
or why not?...........................................................................................................................................................................
15-14. How would an understanding of organization behavior help Ma Huateng? What do you think will
be Tencent’s biggest challenge in the future?.......................................................................................................................
15-15. Using what you’ve learned from the various behavior theories, what does Tencent’s situation tell
you about employee behavior?.............................................................................................................................................
15-16. Looking at the incentives system offered by Tencent, what does that tell you about the importance
of understanding individual behavior...................................................................................................................................
References..................................................................................................................................................................

Summary
Tencent Holdings Limited is regarded as one of the world's most valuable companies. Founded in
1998, Tencent's success hinges on its founder Ma Huateng's belief in the empowerment of
employees. Recognizing that motivated staff are a crucial part of the growth of the company, Ma
Huateng has built an open, communicative, and meritocratic environment. Unlike traditional
hierarchies, Tencent's monthly meetings involve all levels discussing projects, fostering
collaboration and a less formal decision-making process. Financial rewards are commonplace,
acknowledging valuable contributions big and small, while annual bonuses, often exceeding yearly
salaries, showcase the company's commitment to employee success. Most significantly, Tencent
offers profit sharing through stock options. In 2016, each employee received shares worth US$8,000,
directly tying their financial well-being to the company's performance. By prioritizing employee
satisfaction and financial rewards, Tencent has managed to ensure its employees stay motivated and
driven, establishing itself as a major key in the global technology industry.

Discussion Questions

15-13. Do you think the work culture at Tencent is effective? Would it work in other
organizations? Why or why not?

The work culture plays a vital role in an organization's growth and success. It is believed that
Tencent achieves success in creating an effective work culture that helps them receive recognition
from the public thanks to the following key aspects. First of all, the company creates an open and
comfortable atmosphere where the employees feel comfortable to join in discussion with
management and give their opinions contributing to the latest projects. This atmosphere encourages a
good working relationship between staff and management that ensures the effective collaboration for
the company’s goals. Although the decision-making process is not formal compared to other big
organizations, it makes the problem resolution quicker and fosters the job satisfaction and
productivity of employees. Second, the company attaches great importance to linking remuneration
to performance. By giving the employees a reward for their hard work, it can foster a sense of
appreciation and value within the organization. It also encourages them to improve their performance
and perform at their best with enthusiasm(Luthans & Stajkovic, 2012). In addition, internal
competition between employees at Tencent serves as a motivator for innovation, although it is
considered a stressful environment in other organizations. Internal competition promotes innovation
within teams in the company and pushes the team to strive for excellence to create the best products.
Finally, profit or equity sharing gives the employees direct involvement in the company’s success
and allows them to become the stakeholders together with the organization’s founders, promoting
their dedication and loyalty.

The applicability of work culture at Tencent to other organizations is based on several factors such as
industry, company size and national culture. Regarding the industry requiring high competition, it
can take advantage of the internal competition aspect. In contrast, if the industry requires a high level
of collaboration within the company, it cannot adopt this work culture. Moreover, too much
competition can result in conflict and damage teamwork if it is not managed properly. In addition, it
is important to consider the company size because it is easier for small companies to enforce open
communication than the large company. The differences of national culture can limit the
effectiveness of this work culture, depending on the specific culture of the company. Tencent's work
culture wouldn't be suitable for every organization, so the company needs to consider different
aspects including their pros and cons before making a decision to adopt this work culture.

15-14. How would an understanding of organization behavior help Ma Huateng? What do you
think will be Tencent’s biggest challenge in the future?

Ma Huateng, the founder of Tencent, would need to have a solid grasp of organizational behavior to
successfully navigate the intricate workings of his software company. The study of how individuals
interact in groups, how leadership and motivation impact output, and how organizational culture
affects worker performance are all included in the field of organizational behavior. Ma Huateng
would be able to promote a productive workplace that supports Tencent's strategic objectives if he
could grasp these ideas. He might be able to handle internal issues like sustaining innovation,
overseeing a diverse staff, and making sure that corporate culture supports long-term vision with the
aid of effective leadership and an awareness of employee motivation. Furthermore, he may use
organizational behavior insights to help him create conflict resolution and team collaboration
techniques, both of which are critical for maintaining growth in the cutthroat tech sector.

Going forward, negotiating the increasingly strict regulatory regimes in China and abroad might
prove to be Tencent's hardest difficulty. Governments all around the world are putting more stringent
restrictions on cybersecurity, data privacy, and anti-competitive behavior. Tencent will have to
modify its business methods to fit under these new legal parameters while still innovating and
growing its market share. A thorough grasp of organizational behavior and the dynamics of the
global market will be necessary to strike a balance between strategic expansion plans and regulatory
compliance. Thus, Tencent's future success will largely depend on Ma Huateng's capacity to lead
successfully while adjusting to these outside challenges.

15-15. Using what you’ve learned from the various behavior theories, what does Tencent’s
situation tell you about employee behavior?
Tencent's approach to employee motivation can be understood through various behavioral theories.
The company offers financial rewards like bonuses, which align with reinforcement theory. Regular
meetings to discuss projects can be seen as goal setting, which motivational theory suggests can
improve performance (Maslow, 1943). Tencent even fosters competition among employees, an idea
supported by competition theory. Finally, by offering employees stock ownership, they tap into self-
determination theory's concept that a sense of ownership increases motivation (Festinger, 1954). In
conclusion, Tencent utilizes a multi-faceted approach that considers financial rewards, goal setting,
healthy competition, and a sense of ownership to motivate its workforce.

15-16. Looking at the incentives system offered by Tencent, what does that tell you about the
importance of understanding individual behavior

Individual behavior describes a person's actions or reactions at their place of employment. It is

characterized as a combination of responses to both internal and external stimuli. Individual behavior
describes a person's response to various situations and how they display various emotions, like love,
anger, happiness, and rudeness. An individual's behavior has a big impact on how well an
organization performs. Adopting positive behaviors will increase productivity. On the contrary,
negative behaviors will harm the business and result in significant losses. Individuals' actions inside
an organization have a significant impact on many aspects of its performance and operations.
Notably, staff productivity and performance are greatly influenced by individual behavior. A
cooperative and friendly work atmosphere can be sparked by positive behavior, fostering efficient
staff communication and productive teamwork. Individual behavior also plays a major role in
shaping the culture of the business by establishing the standards, morals, and work ethics that
characterize the organization as a whole. The internal dynamics and external reputation of the
organization may be impacted by such cultural foundations. Furthermore, employee conduct and
attitudes play a crucial role in decision-making processes, impacting the effectiveness and results of
strategic efforts. Individual behavior also directly affects staff engagement and retention rates, which
in turn affects the organization's stability and growth trajectory. Individual behavior also plays a
significant role in the interactions between staff and consumers, since satisfied customers can be
greatly improved by adopting good attitudes and customer-centric practices. Consequently, creating
an atmosphere that fosters development, productivity, and total organizational performance requires
a sophisticated understanding of and skill in managing individual behavior.

References

Festinger, L. (1954). A Theory of Social Comparison Processes. Human Relations, 7(2), 117–140.
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Individual Behaviour in Organization | Factors Influencing Individual Behaviour. (n.d.). Commerce

Mates. https://commercemates.com/individual-behaviour-in-organization/

Luthans, F., & Stajkovic, A. D. (2012). Provide Recognition for Performance Improvement. John
Wiley & Sons, Inc. EBooks, 239–253. https://doi.org/10.1002/9781119206422.ch13

Maslow, A. (1943). A theory of human motivation. Retrieved from psycnet.apa.org website:

https://psycnet.apa.org/record/1943-03751-001

Priya, J. (2023, February 23). Individual Behaviour in Organization: What, Factors Affecting,
Biographical Attributes. INVESTORTONIGHT. https://investortonight.com/individual-
behaviour-in-organization/

Tan, Y. (2023). STRATEGIC LEADERSHIP AND MA HUATENG’S ACTIVITIES AT

TENCENT: a CASE STUDY. ResearchGate.
https://www.researchgate.net/publication/370027320_STRATEGIC_LEADERSHIP_AN
D_MA_HUATENG'S_ACTIVITIES_AT_TENCENT_A_CASE_STUDY