In line with Apple and Google, Tencent Holdings Limited, China's leading internet service portal, has become the world's tenth most valuable public companies and is one of the largest gaming companies in the world. Founded in 1998, the company is based in Shenzhen, China. What began as just mobile-messaging service quickly turned into a platform for gaming, bills payment, and money-market funds services. Its ubiquitous WeChat has more than 800 million users. To continue increasing the Internet company's business, founder, Ma Huateng, understands that staffing is the key and that the employees must have a vested interest in its success. Huateng strives to provide open and comfortable atmosphere in the workplace, an ease of communication with management, and recognition of individual accomplishments. At Tencent's monthly meetings, staff members ranging from senior management to trainee managers discuss their latest projects. The decision-making process is not as formal as in other big conglomerates. Extolled by Goldman Sachs and General Electric, the founder viewed that internal competition between coworkers is a necessary driver of innovation. He wants the teams to run in parallel, as no one knows which team will come out with a better product. While moral satisfaction is important, to boost employee enthusiasm Tencent won't underestimate the importance of linking remuneration to performance. Employees receive cash prizes as rewards for valuable results, such as redesigning an interface to new and significant innovations. One manager remarked that an employee is gratified when they win something, no matter how small and big the reward. Cash rewards have become part of the ingrained Tencent culture. Along with it, an annual bonus, often paid prior to the Lunar New Year holiday, can be higher than an employee's yearly salary at Tencent. By becoming the company's shareholders alongside the company's founders, profit or equity sharing is one of the most effective incentives. In 2016, Tencent gave its 31,557 employees 300 shares each as part of the company's anniversary celebrations. This means that each Tencent employee received U.S. $8,000 worth of shares.

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

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

Using what you've learned from the various behavior theories, what does Tencent's situation tell you about employee behavior?

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