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

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 gro...

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Main Authors: Fahmi Rizani, Antonius Grivaldi Sondakh, Sarwani
Format: Article
Language:English
Published: Universitas Padjadjaran 2018-03-01
Series:Jurnal Bisnis dan Manajemen
Subjects:
Online Access:http://journal.feb.unpad.ac.id/index.php/jbm/article/view/150
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author Fahmi Rizani
Antonius Grivaldi Sondakh
Sarwani
author_facet Fahmi Rizani
Antonius Grivaldi Sondakh
Sarwani
author_sort Fahmi Rizani
collection DOAJ
description 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).
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spelling doaj.art-55bf7b7041ac4cfab80adb356919833a2022-12-21T21:43:23ZengUniversitas PadjadjaranJurnal Bisnis dan Manajemen1412-36812442-46172018-03-01191312http://dx.doi.org/10.24198/jbm.v19i1.150Manufacturing Industry Environment: The Effect of Incentive Structures on Group PerformanceFahmi Rizani0Antonius Grivaldi Sondakh1Sarwani 2 Universitas Lambung Mangkurat Universitas Lambung Mangkurat Universitas Lambung MangkuratIn 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).http://journal.feb.unpad.ac.id/index.php/jbm/article/view/150assembly linegroup performanceincentive structuremanufacturing environmentand team.
spellingShingle Fahmi Rizani
Antonius Grivaldi Sondakh
Sarwani
Manufacturing Industry Environment: The Effect of Incentive Structures on Group Performance
Jurnal Bisnis dan Manajemen
assembly line
group performance
incentive structure
manufacturing environment
and team.
title Manufacturing Industry Environment: The Effect of Incentive Structures on Group Performance
title_full Manufacturing Industry Environment: The Effect of Incentive Structures on Group Performance
title_fullStr Manufacturing Industry Environment: The Effect of Incentive Structures on Group Performance
title_full_unstemmed Manufacturing Industry Environment: The Effect of Incentive Structures on Group Performance
title_short Manufacturing Industry Environment: The Effect of Incentive Structures on Group Performance
title_sort manufacturing industry environment the effect of incentive structures on group performance
topic assembly line
group performance
incentive structure
manufacturing environment
and team.
url http://journal.feb.unpad.ac.id/index.php/jbm/article/view/150
work_keys_str_mv AT fahmirizani manufacturingindustryenvironmenttheeffectofincentivestructuresongroupperformance
AT antoniusgrivaldisondakh manufacturingindustryenvironmenttheeffectofincentivestructuresongroupperformance
AT sarwani manufacturingindustryenvironmenttheeffectofincentivestructuresongroupperformance