Final answer:
The statement about types of individual performance pay is true. Individual performance pay includes piece rates, commissions, merit pay, and goal-sharing plans, all of which are methods that align compensation with performance metrics.
Step-by-step explanation:
The statement that the main types of individual performance pay are piece rates, commissions, merit pay, and goal-sharing plans is true. Piece-rate systems reward workers based on the amount of work they complete. Commissions are typically sales-based incentives. Merit pay is extra pay awarded based on performance often evaluated through performance appraisals. Goal-sharing plans involve distributing bonuses based on collective performance targets being met.
When it comes to overall job satisfaction, factors such as financial rewards, personality, autonomy, and work content play a role, with some evidence suggesting that autonomy and work content may be highly predictive of satisfaction. Effort and compensation principles suggest that reward systems should be based on the level of effort exerted and the costs incurred in work activities.
In the context of the United States workforce, it is suggested that it operates mainly as a meritocracy since highly skilled jobs tend to pay better than low-skill jobs, implying that rewards are often correlated with skill and performance levels within the job market.