External equity refers to a. how a job’s pay rate in one company compares to the job’s pay rate in other companies b. how fair the job’s pay rate is when compared to other jobs within the same company c. the fairness of an individual’s pay as compared to what his or her co-workers are earning for the same or very similar jobs within the company, based on each individual’s performance d. the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay

how a job’s pay rate in one company compares to the job’s pay rate in other companies

Explanation: External equity refers to the situation when a company's pay rate differs from the market's pay rate to the employees of the organisation. It is also termed as matching strategy.

It is considered as a major factor in employing and retaining sufficient employees in the organisation. Therefore, lesser the external equity the better it is.

From the above explanation we can conclude that the correct option is A.

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