Manufacturing Industry Environment: The Effect of Incentive Structures on Group Performance

Fahmi Rizani, Sondakh Grivaldi Antonius, Sarwani Sarwani


In the manufacturing industry environment, assembly lines and teams are applied to several industries such as Ford's automotive industry that implements assembly lines and Volvo which implements teams (Libby and Thorne, 2009). This study aims to examine the effect of incentive structures on group performance in a manufacturing environment. The incentive structures used in this study are individual incentives, group incentives, and mixed incentives, while the manufacturing environment used is the assembly line and team. This research is a laboratory experiment which involved 150 students as the subject sample for the study and it used factorial design 3 x 2 between subjects. The subject sample was assigned to a create building using bricks in accordance with the instructions. The results showed that the incentive structure influenced the group performance on the assembly line and team. It was found that in a team, group incentives motivate group members to interact, share information, and work together to produce more wonderful results, group incentives produce higher group performance than individual and mixed incentives. In regard to assembly lines, individual incentives resulted into higher group performance than group and mixed incentives, since individual incentives tend to motivate individuals to work for better output(s).


assembly line, group performance, incentive structure, manufacturing environment, and team.

Full Text:



Baroto, T. (2002). Perencanaan dan Pengendalian Produksi. Jakarta: Ghalia Indonesia.

Boudreau, J., Hopp, W., McClain, J., & Thomas, I. (2003). On the Interface Between Operations and Human Resources Management. CAHRS Working Paper Series, 02-22.

Deutsch, M. (2006). Cooperation and Competition. Dalam M. Deutsch, P. T. Coleman, & E. C. Marcus, The Handbook of Confilct Resolution: Theory and Practice (Second ed., hal. 23-42). San Francisco: Jossey-Bass.

Groover, M. P. (2010). Fundamentals of Modern Manufacturing: Materials, Processes, and System. Hoboken: John Wiley & Sons, Inc.

Hartono, J. (2015). Metodologi Penelitian Bisnis: Salah Kaprah dan Pengalaman-pengalaman (Keenam ed.). Yogyakarta: BPFE.

Hinrichs, G., and R. Tenkasi. 2007. Enactment, sensemaking and social agreement: An interpretive model of implementing high performance work systems. Research in Organization Change and Development. Greenwich, CT: JAI Press.

Hwang, Y., Erkens, D., & Evans III, J. (2007). Knowledge Sharing and Incentives Design in Production Environments: Theory and Evidence. 1-39.

Kovach, K. A. (1987). What Motivated Employees? Workers and Supervisors Give Different Answers. 58-65.

Libby, T., & Thorne, L. (2009). The Influence of Incentive Structure on Group Performance in Assembly Lines and Teams. Behavioral Research in Accounting, 21, 57-72.

Merchant, K. A. 1982. The control function of management. Sloan Management Review 23 _4_: 43–56.

Nahartyo, E. (2013). Desain dan Implementasi Riset Eksperimen (Kedua ed.). Yogyakarta: UPP STIM YKPN.

Nahartyo, E., & Utami, I. (2016). Panduan Praktis Riset Eksperimen. Jakarta: PT. Indeks.

Thomopoulos, N. (2014). Assembly Line Planning and Control. London: Springer International Publishing Switzerland.

Wiley, C. (1997). What Motivates Employess According to Over 40 Years of Motivation Surveys. International Journal of Manpower, 18(3), 263-280.

Young, S., Fisher, J., & Lindquist, T. (1993). The Effect of Intergroup Competition and Intragroup Cooperation on Slack and Output in a Manufacturing Setting. The Accounting Review, 68(3), 466-481.



  • There are currently no refbacks.

Copyright (c) 2018 Jurnal Bisnis dan Manajemen

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.