Reduction operations take multiple values and reduce them to a single value. Common reduction operations include finding the maximum/minimum value, summing/multiplying all elements, or applying an associative binary operator. PVM supports reductions using the pvm_reduce() function, which takes parameters like the reduction function, data array, data type, group name, and root process. An example shows summing the elements of an array across three tasks in a group, with the results returned to the root task.