The Impact of Tencent's Performance Management Reform on Enterprises and Employees

Chenjia Du

2025

Abstract

In the context of intensified competition in the internet industry, performance management has become a core tool for companies to enhance efficiency and competitiveness. This paper takes Tencent as a case study, using literature analysis, case comparison, and data statistics to systematically examine the dual impact of its performance management system reform on both the organization and employees. The study finds that while Tencent's original five-star performance system had clear goals, the forced distribution led to internal competition and a complex promotion process resulted in talent loss. After the reform in 2022, the evaluation levels were simplified to three tiers, and promotion authority was delegated to departments. Although this reduced internal competition (the turnover rate dropped to 9.8%, lower than the industry average of 15.6%), the lack of differentiation in evaluations weakened incentives for high-performing employees. It is recommended to optimize the quantification standards for evaluation indicators, strengthen long-term equity incentives, and promote cross-departmental innovation resource integration. The research indicates that performance reforms need to balance efficiency and fairness, and dynamically adjust to align with organizational strategies, providing practical references for optimizing management in internet companies.

Paper Citation

in Harvard Style

Du C. (2025). The Impact of Tencent's Performance Management Reform on Enterprises and Employees. In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML; ISBN 978-989-758-775-7, SciTePress, pages 352-358. DOI: 10.5220/0013844700004719

in Bibtex Style

@conference{iceml25,
author={Chenjia Du},
title={The Impact of Tencent's Performance Management Reform on Enterprises and Employees},
booktitle={Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML},
year={2025},
pages={352-358},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013844700004719},
isbn={978-989-758-775-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML
TI - The Impact of Tencent's Performance Management Reform on Enterprises and Employees
SN - 978-989-758-775-7
AU - Du C.
PY - 2025
SP - 352
EP - 358
DO - 10.5220/0013844700004719
PB - SciTePress