Final answer:
Joe's job of hand-dyeing shirts for $5.00 per shirt is an example of a pay-for-performance option(e) compensation plan, where his earnings are directly related to the amount of work completed.
Step-by-step explanation:
Joe has a summer job hand-dyeing shirts that will be sold on the boardwalk, where he is paid $5.00 per shirt. This is an example of a pay-for-performance compensation plan. The compensation strategy is directly tied to the quantity or quality of work Joe completes, rather than a fixed salary or hourly wage.
In comparison to the other options, profit-sharing typically involves receiving a portion of the profits based on the company's earnings, while pay-for-knowledge is related to the employee's skill level or acquired knowledge.
Bonus payments are usually additional compensation given for reaching certain goals or milestones, and gainsharing involves sharing in the cost savings or gains from increased productivity. Joe's situation aligns closely with pay-for-performance because his earnings increase directly in line with the number of shirts dyed.