How does a company construct a pay policy line? If a company's competitive strategy is to charge less for its products$/$services than its competitors and the labor market for many of the company's jobs is loose, where will it position its pay ranges relative to the pay policy line? Within this company, two employees hold the same job and are performing well, but they have different amounts of experience$/$tenure$.$ The more experienced employee with greater tenure makes $$120,000$ and receives a $2\%$ raise in salary, while the less experienced employee with less tenure makes $$80,000$ and receives a $10\%$ raise in salary. Since everything else is equal, explain why the raise $\%$ value for the more experienced employee is substantially less. Then, from the perspective of the company, do these raise values violate individual equity? Explain why or why not. Now, consider a third employee, newly hired into a job positioned within the next pay grade up$.$ That employee receives a starting salary of $$140,000.$ Does that salary violate individual equity? Explain why or why not.