| Abstract | This research is conducted and submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration (Exclusive) Program awarded by Asian Institute of Technology. In this research, a study on the current incentives plan - individual-based incentive plan - of New Shipbuilding Division (NSB), a subsidiary of PetroVietnam Technical Services Cooperation (PTSC) and its impacts to teamwork and the company's productivity was carried. The objectives are to evaluate the current individual-based compensation system of NSB. It examines both advantages and disadvantages of the system in the case of NSB - a shipbuilding company, to be able to determine any problems caused by the system to the company's productivity. It investigates the reactions of staff against the incentives plan, analyzing whether the individual incentive pay plan affect positively or negatively to the teamwork, and lastly, an alternative incentives scheme - group incentives scheme - has been recommended to the company and staff. Questionnaire with 18 questions was designed and distributed to staff of 3 selected departments. Results of the data was compiled and presented in bar graph and table formats. Through the survey was quite sensitive thus some respondents might not have given their true responses and the survey was conducted with a small sample, it is a good guide for management to make decisions. From the results of the survey, there was evidence that staff is definitely not satisfied with the individual incentive plan. It found that almost 45% of staff was unsatisfied with the current incentive scheme. There is a string of reasons that make staff does not happy with individual-based incentive plan, including: transparency link between performance incentives with any standards or goals was not existing, individual performance appraisal is not the best one in case of NSB. Since staff felt that they are paid unfair, their commitment to the company in whole and to their team in particular was very low. As a new incentives scheme - group-based incentives scheme - is recommended by the company, staff supported this idea strongly. 63% staff has no hesitate to stick themselves with the new scheme. The group-based incentives plan therefore is expected to lift up the poor performance of the company. Hence, it would be advisable if the division decide to adopt group incentives schemes. Meanwhile, they also suggested making some changes in jobs design, creating a proper feedback channel, and customizing the group incentives scheme to make it become more effectively. |