Describe the top-down and bottom-up budgeting processes Define compa-ratio Identify the major advantage of outsourcing Describe how compensation strategy influences effectiveness through influencing labor costs as well as helping to increase revenues Identify the challenges that can occur when engaging in headcount/workforce reductions Describe what compensation managers must know in order to successfully implement and manage change Discuss the importance of communication when it comes to compensation, and the information that a company might provide in different circumstances (e.g., whether the pay system is based on work-related or business logic or not) Describe the differences between decentralized and centralized compensation systems Describe the dilemmas/challenges associated with decentralized compensation systems Discuss the relationship between core and contingent employees and compensation and benefit cots