<pre>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 manufacturing environment. The incentive structures that used in this study are individual incentive, group incentive, and mixed incentive, while the manufacturing environment used is the assembly line and the team. This research is a laboratory experiment involving 150 students as subject and using factorial design 3 x 2 between subjects. Subject was assigned to create building using brick in accordance with the instructions. The results showed that the incentive structure had an effect on the group performance on the assembly line and team. For team, because group incentives motivate group members to interact, share information, and work together to produce more results, group incentives produce higher group performance than individual and mixed incentives. In assembly lines, individual incentive resulting higher group performance than group and mixed incentive since individual incentive motivate individual effort to produce more output.</pre>