Managerial value, financial condition, and downsizing reform: a study of U.S. city governments

This study examines downsizing reforms in U.S. city governments to understand the influence of managerial values and financial conditions on the implementation of downsizing strategies. Based on the analyses of national survey data, we found that downsizing tends to be implemented with a package of downsizing factor including structural and procedure changes. We further confirmed that managerial values, measured as their innovative attitudes and ethical concerns, affect downsizing factors of structural changes. Financial conditions, including budget surplus and fund deficits, are not related to downsizing strategies. Implications of the research findings are presented for future studies of public downsizing reforms.