For my Human Resources class I need to understand how compensation and pay for performance works. I am reading the chapter but can’t make this more succinct. What is the best way to clarify the advantages and disadvantages of pay-for-performance and the different pay-for-performance systems:

For example, in what situations is it GOOD TO USE pay for performance,

and what situations that it is BAD TO USE pay-for-performance?

without several real examples of each it’s hard for me to understand what they are talking about in this chapter