GK
HUMAN RESOURCE MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Wage Fund Theory
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Subsistence Theory
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Surplus Value Theory
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Residual Claimant Theory
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Detailed explanation-1: -Karl Marx propounded this theory. He deviated from the Subsistence Theory of Wages and stated that the wages are drawn to a subsistence level not because of the population but because of the unemployed labourers.
Detailed explanation-2: -That is, according to the theory developed by Karl Marx, the worker is paid less than he actually produces. Thus, the difference between what he actually produces and his wage is what is known as surplus value. This surplus value constitutes the extra profit of the employer.
Detailed explanation-3: -This idea was developed to a considerable extent by John Davidson, who proposed in The Bargain Theory of Wages (1898) that the determination of wages is an extremely complicated process involving numerous influences that interact to establish the relative bargaining strength of the parties.