Pay-for-performance business management question

Pay-for-performance, also called incentive pay, ties at least part of the compensation to employee effort and performance through merit-based pay, bonuses, team incentives, gainsharing or profit sharing (Daft, 2016).  With pay-for-performance, incentives are aligned with the behaviors needed to help the organization achieve its strategic goals. However, recent years have shown the potential dangers of misdirected pay-for-performance plans.

How would you go about deciding whether to use a job-based, skills-based, or pay-for-performance compensation plan for employees in a textile manufacturing plant?  For wait staff in a restaurant?  For salespeople in an insurance company?