Applying Cost Reduction Managerial Strategies in Government Agencies: Lessons from the Chinese Government Reform

This study examines the application of cost reduction managerial strategies in Chinese government agencies to understand their contributions to the literature of government reform. The study first provides a review of studies on the Chinese government reforms and in three cost reduction managerial strategies: laying-off employees, merging units, and targeting hidden costs. It then explains the research data and analytical techniques used to compare the importance and implementation of the three strategies and test the influence of personal and organizational factors to the strategies. The study concludes with discussions about lessons from the Chinese reform and implications for future studies.