Final answer:
Developing the merit pay grid is not a key issue in competency-based pay systems because these systems focus on measurable skills and learning opportunities rather than overall job performance.
Step-by-step explanation:
The question pertains to competency-based pay systems, specifically regarding which aspect is not a key issue in the design and implementation of such systems. The correct answer to the question is option (d), developing the merit pay grid. Competency-based pay systems focus on rewarding employees based on their acquisition and demonstration of specific competencies that are linked to high performance. Key issues in these systems include measuring achievement of each competency (a) and identifying competencies that affect performance (b). Option (c), providing learning opportunities, is also integral to competency-based systems as it ensures employees have the means to develop the necessary competencies. In contrast, the merit pay grid is more closely associated with traditional merit pay systems, where pay increases are typically linked to overall job performance or tenure, rather than the achievement of specific competencies.