Final answer:
Skill blocks within skill-based pay systems design involve categorizing jobs based on required skill levels. The two variables emphasized are the degree of skill required for a job and the number of qualified people available for that job.
Step-by-step explanation:
The basic notion of 'skill blocks' within the context of skill-based pay systems design refers to categorizing jobs based on their required skill levels. It involves grouping jobs into different skill levels or blocks, with each block representing a specific set of skills or qualifications.
The two variables that are emphasized in the concept of skill blocks are the degree of skill required for a job and the number of qualified people available for that job. Jobs that require higher skill levels are placed in higher skill blocks, while jobs that require lower skill levels are placed in lower skill blocks. This categorization helps in designing skill-based pay systems that reward employees based on their skill levels and qualifications.