Explain compensating differentials theory

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This is compensation subject,please help me answer the following questions (also explain it well so that I can understand)

1. Explain Compensating Differentials Theory (answer comprehensively but as briefly as possible)

2. What is its implication to compensation decisions? What should management do inorder to respond to this? (answer comprehensively but as briefly as possible)

3. Explain Reservation Wage theory. (answer comprehensively but as briefly as possible)

4. What is its implication to compensation decisions? What should management do in order to respond to this? (answer comprehensively but as briefly as possible)

5. Studying the varying effects of the different pay policies to each of the compensation objectives, (i.e., ability to attract, retain employees, control costs, reduce pay dissatisfaction, increase productivity)

Question: What are some points that will guide a compensation manager decide what pay policy/ies to use in his/her company? (answer comprehensively but as briefly as possible)

Reference no: EM132784128

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