Final answer:
Competency-based pay structures are designed to compensate employees based on the depth or breadth of their relevant skills and knowledge, aligning with the principles of equal pay for similar levels of skills and a meritocratic workforce (b).
Step-by-step explanation:
Pay structures that link pay to the depth or breadth of the skills and knowledge a person acquires, which are relevant to work, are known as competency-based pay structures. Competency-based pay reflects the understanding that the tasks employees perform vary in complexity, involvement, and necessary competency. Therefore, individuals who have developed a broad or deep set of skills relevant to different aspects of their jobs may receive compensation reflective of those competencies.
This system aligns with the doctrine that people who do jobs requiring the same level of skill, training, or education should receive equal pay. It is fundamentally linked to the meritocracy within the workforce, where wages and opportunities are often determined by the skills, education, and experiences one possesses.