AbAz Security does not have a formal salary structure nor does it have salary ranges or use compensable factors. Salary rates are based on those prevailing in the surrounding community and are strengthened with an attempt on the part of Ray Abdul to maintain some aspect of equity between what workers with different responsibilities in the company are paid. Ray has always followed a policy of paying his employees about 10% above what he feels are the prevailing rates in the market, a policy that he believes reduces turnover while fostering employee loyalty. Obie, somehow is concern that his fathers informal policy of paying men about 15% more than women for the same job. His fathers explanation is, They are stronger and can work harder for longer hours, and besides they all have families to support.

a)Is Ray Abduls male-female differential is a good decision?

b)Discuss two (2) possible consequences of Ray Abduls male-female differential pay policy.